Royal London reveals it paid £575m in protection claims last year, accounting for 99.7% of all claims received.
Royal London’s 2019 claims data show that the major UK insurer paid:
Royal London Life Insurance paid 94.3% of all Term Life Insurance claims and 89.1% of all Terminal Illness claims last year. In total, such claims amounted to more than £144 million in total.
The average Term Life Insurance claim stood at £79,823, while for Terminal Illness claims the average figure was £139,317.
Royal London paid out on 2,032 policies for critical illnesses and children’s critical illnesses in 2019. In total, these claims amounted to more than £150 million.
The average age of a Critical Illness Insurance claimant (excluding children) was just 50 years old.
Cancer triggered the highest proportion of claims, accounting for 65% of the total. Heart attacks (10%) and strokes (6%) occupied the second- and third-most claimed for conditions.
Royal London Income Protection splits its claims data in two. For new claims paid in 2019 plus existing claims carried over from previous years, Royal London paid 91.6% of claims.
For brand new Income Protection claims clients made in 2019, the payout rate stands at 80.6%.
Royal London paid £3.3 million in new and existing Income Protection claims in 2019 to 813 clients, 257 of which were brand new claimants in 2019.
The most common reasons for Income Protection claims were musculoskeletal problems (43%), cancer (17%) and mental health issues (12%).
The average age of an Income Protection claimant was just 40 years old.
Director at Drewberry
“It’s excellent to see Royal London publish its claims statistics. With more than half a billion pounds paid out in protection claims last year, Royal London is certainly one of the major forces in the protection industry when it comes to supporting clients with claims.”