Insurance claim payouts have increased by £340m year-on-year, latest claims statistics have revealed.
According to figures from the Association of British Insurers (ABI) and the Group Risk Development (Grid) organisations, the insurance industry paid out £5bn in protection claims over 2017 across income protection, critical illness cover and life assurance.
This represents an increase of more than £340m on 2016, and equates to a daily payout of £13.9m.
Moreover, the figures also showed 97.8 per cent of claims across group and individual protection were paid out in 2017. For individual policies, the total number of claims paid rose by more than 20,000 on 2016's figures.
The total value of claims paid for critical illness passed £1bn for the first time ever, with the average claim increasing to £73,000.
The figures also showed 96 per cent of critical illness claims made for cancer were paid out, demonstrating the positive impact these products have at the most difficult of times.
In group protection, as well as supporting a record number of families with a financial payment, group risk insurers helped nearly 5,000 people back to work after a period of sick leave and a further 7,900 were assisted by the industry during 2017 through referrals to help and support, funded by group risk insurers.
Roshani Hewa, assistant director, head of health and protection at the ABI, said: "Protection products provide vital financial support in people’s time of need. To see that the industry has collectively supported families with more than £5bn in 2017 for the first time ever is incredibly positive.
"A serious injury or illness can be traumatic, but with insurers paying out on more than 97 per cent of claims, consumers can rest assured that they’ll have the support they need if the worst happens."
In terms of the main reasons for claims, cancer was a main cause across all three group risk products, and mental illness was marginally the top cause of claim under group income protection policies.
Craig Paterson, underwriting and claims philosophy manager at Royal London, commented: "As an industry we have improved how we support people with mental health conditions in terms of our underwriting approach, claims handling and in the added value services we provide.
"When we receive a claim where the underlying cause is a mental health condition, we treat the claim in the same way as we would any other – we gather information to assess if the claim is valid and pay the claim as quickly as possible.
simoney.kyriakou@ft.com
