95% of term life, 91% of critical illness and 72% of income protection claims paid
Royal London have announced that it paid 99% of protection claims in 2018, with more than £506m paid out, to more than 38,000 customers and their families.
Nearly £174m was paid in life and terminal illness claims last year, with 95.2% of term life insurance claims getting paid, with an average of nearly £103,000 per claim.
Terminal illness claims had an average payout of more than £156,000 with 89.4% of claims being paid.
More than £132m was paid in whole of life claims with 99.9% of the claims being paid. The average payout was more than £3,800.
£190m was paid in critical illness (CI) claims with an average payout of nearly £99,000. 91.2% of CI claims were paid out, with 2.9% declined due to misrepresentation and 5.9% of claims not meeting the plan definition.
The most common reasons for a CI claim were cancer (64%), heart attack (11%), stroke (8%), multiple sclerosis (4%) and children's CI (4%). Cancer accounted for more than half of the children's CI claims (56%).
The average age of a CI claimant (excluding children) was 50 years old and the average age of a children's CI claimant was just seven years old.
Royal London paid £930,544 for income protection (IP) claims, with 72.2% of claims being paid in 2018, and the average payout being more than £5,900.
Meanwhile, £29,000 was also paid out on Fracture Cover claims. Of the claims that were declined, 13.9% were due to misrepresentation and 13.9% did not meet the plan definition.
The most common reasons for IP claims were musculoskeletal (34%), cancer (20%) and mental health (13%), with the average age of an IP claimant being 43 years old.
Craig Paterson, underwriting & claims philosophy manager at Royal London, said: "While 99% of our claims were paid last year, we remain focused on continually improving our claims experience. We have sped up the claims process and reduced the need for paper forms, which has meant that for many claims we were able to take digital consent from customers to get the medical evidence we needed."
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