Protection insurers paid out £7.84bn in 2025

Looking at individual policies, £5.15bn was paid out in life insurance, income protection (IP) and critical illness (CI) claims across 2025. This is down by 3% from 2024, although it marks an 18% rise from 2022. Overall, 97.9% of individual protection claims were paid last year, with a total of 258,000 new claims paid. The average claim was £19,300, which is up by 2% from 2024. Insurers paid out £4.03bn in life insurance claims in 2025, paying 96.7% of new claims. For Total Permanent Disability, £31m was paid by providers, with 66.7% of new claims paid. As for IP claims, insurers p...