ProtectionMay 24 2023

L&G paid out record £883mn in protection claims last year

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L&G paid out record £883mn in protection claims last year
The prevalence of Covid-19 related claims has dropped significantly since 2021 (Alessia Pierdomenico/Reuters)

Financial services and protection provider Legal & General paid out a total of £883mn in claims last year, an increase of 5 per cent on 2021. 

In total, the group paid out 17,768 claims across life insurance, income protection and critical illness products last year, on average paying out £2.4mn per day.

By comparison, Aviva reported in March that it paid out £1bn in individual protection claims last year. 

Commenting on last year’s business levels, L&G Retail director of claims and underwriting, David Banks said: “Legal & General is committed to paying as many claims as possible to our valued customers, and we’re proud to have provided increased financial support for a record number of people at their time of need over the last year.”

According to L&G, it saw the prevalence of Covid-19 related claims fall last year compared to 2021. 

Covid-19, previously the third top reason for people claiming life insurance, fell to number six in the reasons people claim. 

In its place, cancer, heart and neurological conditions were the most common causes for life insurance. 

Meanwhile, the average income protection claimant was 39 years old, which L&G said demonstrates the importance of having protection in place at every age.

“While the financial support we offer to individuals and their families when they face a sudden loss of income is critical, we’re incredibly proud of the additional wellbeing services we’ve provided for our customers,” Banks said. 

The use of the these wellbeing services has doubled since 2021, according to L&G.

These include a package of optional benefits and services for customers who buy policies via an intermediary, along with access to telephone support from a registered nurse who can help with chronic and physical illness, trauma, relationship breakdowns and care concerns. 

Access to specialist consultants and fracture cover are also available to customers at an additional cost. 

Banks said: “Protection goes far beyond paying claims, and we continue to put the ongoing emotional and physical health of our customers first through enhancing our extensive umbrella benefits.”