Recompensing policyholders who benefitted from life insurance, critical illness and income protection insurances accounted for a staggering £839 million for just two UK policy providers during 2015, according to a report highlighted by www.actuarialpost.co.uk.
It transpires that both Aviva and Friends Life paid-out the equivalent of £2.3 million every day during the course of last year, to cover claims made on life, critical illness and income protection policies. If you’re looking to break this down still further – and The Actuarial Post clearly was – this amounts to an eye-opening £1,600 being settled every minute.
in terms of the two aforementioned insurance policy providers in the spotlight on this occasion, this represents an impressive pay-out success rate for the insured parties, equating to 98.9% of life insurance claims being settled, followed by 92.5% and 92.4% with regards to critical illness and income protection respectively.
It’s since been established – and based on these recent revelations – that over 23,000 policyholders reaped the benefits of having had the aforementioned insurance lines in place, while it was calculated that the average age of critical illness claimants is 47-years old (45 for women, 49 for men).
Remaining on the subject of critical illness insurance, other key stats reported included the average sum paid-out to policyholders being in the region of £74,000, whilst cancer is still recognised as being the most likely reason critical illness policies are triggered, accounting for 63% of all claims, followed by heart attack (10%), stroke (6%), multiple sclerosis (4%) and total permanent disability or ‘TPD’ (4%).
Of those people who had been diagnosed with a terminal illness or who had sadly passed in 2015, Aviva recompensed the surviving family members of those who’d previously arranged a life insurance policy to the tune of £500 million plus, with a further £303 million been handed out to beneficiaries of critical illness cover. Looking at the amounts paid-out to income protection policyholders over the same period (and by Aviva), figures confirm a sum of £35 million. Addressing the subject of policy claims being declined, Aviva admitted that critical illness policies represented the biggest rejection area, although still not by a significant amount; purporting that just 1.6% of claims were dismissed on the grounds of non-disclosure, with 5.9% in relation to pre-conditions having not been met.