Insurance claim statistics to break common misconception
Around £13m a day was paid out to support people who have protection insurance products such as life insurance, critical illness or income protection, latest figures from the Association of British Insurers (ABI) show.
In addition, virtually all protection insurance claims (97.3%) were paid in 2016.
The figures also show the number of life insurance claims paid hit 36,814 in 2016, with over 98% of claims paid out at an average value of £75,000.
Critical illness claims hit 15,464 with 92.2% of claims paid out at an average value of almost £68,000.
While there has been a small fall in the reported percentage of income protection claims paid, this is largely due to a change in the methodology around how this figure is measured. The ABI has changed the methodology in order to make our data more meaningful. Further analysis of this change can be found on the ABI website.
ABI Assistant Director, Head of Health and Protection, Raluca Boroianu‑Omura said:
“The fact that Protection insurance products pays out £13m a day shows how they can help to relieve the financial strain on families following a death, serious illness or injury. Insurers deliver on their promise to help individuals and households during a time of great distress, as demonstrated by the fact that over 97% of all protection claims were paid in 2016.
“Serious illness or injury can occur at any time and will inevitably cause strain on families financially, as well as personally. Products such as income protection, life insurance and critical illness cover improve the financial resilience of individuals, households and businesses and give peace of mind.
Importantly, protection products also relieve financial pressure on the welfare state and the NHS.”
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Barry Pappin – Protection Specialist and Co-founder of Vita – an independent, national award winning, insurance brokerage in Cardiff.