Protection industry pays out £6.2bn on 2020 claims

The insurance industry paid out more than £6.2 billion in protection claims during 2020, a year-on-year increase of more than £438 million, the yearly figures show. The percentage of claims paid has stayed largely consistent at 98%, compared to 98.3% in 2019, which was the highest on record. Over £3.4bn in life insurance claims were paid in 2020, an increase of £349m on the previous year. The average payout on term life insurance policies (individual and group) was £79,304. Claims payouts for critical illness during 2020 were recorded at £1.13bn, a 6% fall in the number of critical...