ProtectionApr 29 2016

Royal London paid out 98% of claims

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Royal London paid out 98% of claims

Royal London’s UK protection businesses paid 98 per cent of all claims received and made payments totalling more than £250m in 2015.

Its UK intermediary protection business paid 93 per cent of critical illness claims and 94 per cent of income protection claims.

Debbie Kennedy, head of protection for Royal London Intermediary, said: “Our latest claims data provides reassurance that claims are paid and should help boost confidence in the industry.

“However claims data is only part of the story and it is important we focus on the people behind the statistics.

“Our Helping Hand service provides individual support to help people deal with the impact of a critical illness, an income protection claim or the death of a loved one.”

For income protection, the average pay out was £10,145.

The top three reasons for income protection claims were musculoskeletal conditions (34 per cent), followed by cancer (23 per cent) and mental health conditions (18 per cent).

The average claimant was 43-years-old, 60 per cent were male and 40 per cent female.

More than 40 per cent of claimants had held their plan for four years or less and the average time a claim had been in payment was just under five and a half years.

The top five reasons for CI claims last year were cancer (63 per cent), heart attack (10 per cent), stroke (6 per cent), multiple sclerosis (5 per cent) and children’s critical illness (3 per cent).

The average age for an adult claimant was 48 years old, with an average pay-out of £81,800 and the largest claim paid was for £750,000.

The average age of a cancer claimant was 49 years old and the average age of a children’s CI claimant was 13 years.