More than 98% of protection claims were paid out by Scottish Widows in the second year of the pandemic and for the third consecutive year, according to the data published by the insurer today.
In total, 10,426 life insurance and critical illness policy holders received financial support in 2021.
Broken down, 99.3% of life claims and 93% of critical illness claims were paid out last year, representing 9,035 and 1,391 claims respectively.
The insurer highlights a 5% drop in critical illness claims volume compared to 2020 figures, and 17% since 2019.
This may be the result of a number of factors, including some people still not feeling able to seek medical advice due to the ongoing pandemic and the continued pressure and disruption faced by the health service in the UK.
Almost £208m was paid out in total in 2021 at an average of just under £4m per week, which is around the same level as 2020, when the insurer paid out on 99.5% of life claims and 94.2% of critical illness claims.
Scottish Widows figures also show that cancer remains the most common reason for critical illness claims (63.8%) and life insurance (29.6%).
Most common cancer claims in men are for bowel cancer (14.7%), prostate (14.4%), malignant melanoma (7.3%) and Hodgkin’s lymphoma (6.2%).
In women the most common types of cancer include breast cancer (52.5%), bowel (9.6%), uterine or cervical (6.4%) and malignant melanoma (6.2%). Helping customers manage the cost of cancer new research from leading cancer charity, Macmillan Cancer Support, one of Scottish Widows’ partners, found that 83% of people with cancer in the UK experience some kind of financial impact from their diagnosis, and for those affected, this reaches an average of £891 a month, in addition to their usual expenditure.
On top of the extra financial burden a cancer diagnosis can bring, many people living with cancer are also facing increased costs from the energy price cap lift earlier this year, with an average increase of £693 for UK households, as well as the general rise in cost of living. In response, Scottish Widows has announced an uplift in advance payments for critical illness from £2000 to £3000 from 1 May 2022.
This is offered as a lump sum at any stage of the claim to help customers cover any additional costs while their claim is being processed. In 2021 336 Scottish Widows customers were supported by Macmillan Cancer Support services through their partnership, with additional benefits totalling over £140k.
Other trends Scottish Widows paid out 1066 Covid-related claims totalling over £13 million in 2021. This represents a 64% increase in claim volumes since 2020, with an 85% rise in financial support provided to families impacted by Covid-19 last year compared to the year before.
Additionally, Square Health’s Clinic in a Pocket, a 24/7 GP appointment and prescription delivery service offered through Scottish Widows Care service, has seen almost two in five (38%) requests out of the core 8am-8pm hours, with 97% of users offered an appointment within four hours.
Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, said: “When you bring together challenges posed by rising cost of living together with continued emotional and financial impact of the Covid-19 pandemic in its second year, we must recognise the difficulties that families in the UK have been faced with.
“And while we are very proud to have maintained a payout rate of over 98%, delivering on our promise to protect and support our customers during the toughest of moments, we note the drop in detection of critical illnesses for another year.
“Cancer remains the most common cause of both critical illness and life insurance claims and we must emphasise the importance of early diagnosis.
“The pandemic has undoubtably impacted the backlog in the health service and some people may be feeling hesitant to see a doctor about their symptoms, but we would urge everyone to seek medical advice if they notice any changes in their health.
“Early diagnosis, advance payments, Scottish Widows Care personal nurse support and access to Square Health’s Clinic in a Pocket with 24/7 GP appointments and free repeat prescription delivery, could provide additional practical and mental support, financial help and resilience during a difficult time.”
