Mutual insurer, Royal London, paid out on average over £52m a month on protection claims last year.
In total it paid out over £631m, representing 99.4% of all claims to almost 80,000 customers and their families, helping them cope financially with life shocks.
Royal London’s package of support services, Helping Hand, provided 1,067 customers or their families support throughout 2022, and helped with a variety of issues including orthopaedic (21%), cancer (20%), mental health (15%) and bereavement (11%).
Royal London paid more than £182m in Life Insurance and Terminal Illness claims in 2022, totalling over 2,000 claims, averaging £86,500 per claim.
Around £312m was paid in Whole of Life claims in 2022, with 99.9% of all claims paid. The mutual insurer paid 74,000 claims averaging £4,211 per claim.
Royal London paid 93.6% of Critical Illness (CI) claims in 2022, averaging more than £65,000 per claim and a total of more than £132m.
6% of critical illness claims were declined with the majority of those due to not meeting the policy definition. The most common reasons for a CI claim were cancer (65%), heart attack (8%) and stroke (8%).
Around £2.5m was paid out in income protection (IP) claims last year.
The most common reasons for an IP claim were musculoskeletal (52%), cancer (10%) and mental health disorders (6%).
Craig Paterson, chief underwriter at Royal London, said: “Royal London is always looking at ways to pay more protection claims and our track record is a strong endorsement of that.
“It’s important to remember that those making a claim come to us at a time when their lives have been turned upside down, so it’s rewarding to play a part in supporting them financially but also emotionally.”
He added: “Publishing our claims statistics reinforces the importance of having a financial safety net, providing a financial lifeline when the unexpected happens.
“The pay out from a claim can help those impacted get back on their feet, but the value it provides goes beyond just the money.
“Support through Helping Hand, which is available to people at any time, not just the point of claim, provides invaluable emotional and practical support.
“It’s often overlooked that protection insurance is the foundation of all financial planning, helping to safeguard lifestyles and sustaining future plans which could be unachievable without it.”
