LV paid out £135mn on individual protection claims over the course of 2023.
The insurer pointed out this represented an increase of 6 per cent compared with 2022 and meant it paid out 94 per cent of all individual protection claims.
Of the 6 per cent which were not paid, over seven in 10 were because of misrepresentation or fraud.
Common areas of misrepresentation included failing to accurately disclose existing medical conditions, alcohol units consumed and smoking status.
LV head of underwriting and claims, Anna Rogers, said: “In 2023 LV paid out £135mn in protection claims which is the highest on record LV has paid out for protection claims.
“More than 8,000 individuals and their families have benefited from having a LV protection policy in place, and we’re proud to have supported them through the difficult moments in their lives.
“We were unable to pay 6 per cent of claims and a good proportion of these outcomes could have been avoided.
“Providers and advisers must work together to educate customers on the importance of full and accurate disclosure in their applications.
“This would help break down some of the preconceptions out there about insurance.”
Critical illness
LV paid out more than £27mn in critical illness claims in 2023 to over 370 individuals and families, with the highest payment of more than £600,000.
Cancer was the most common condition, accounting for 59 per cent of all critical illness claims.
This was followed by heart attack at 10 per cent of claims, and stroke at 5 per cent.
The most common forms of cancer claims were breast (25 per cent), bowel (13 per cent) and prostate (12 per cent).
In addition, LV paid a total of £605,000 for 25 children’s claims, the majority of which were cancer claims.
Meanwhile, the insurer’s life insurance claims totalled more than £87mn, which supported 5,500 families.
The highest claim payment was £2mn and the top causes for claims were cancer, claimed by 36 per cent, heart-related conditions (23 per cent), respiratory (9 per cent), and stroke or brain haemorrhage (5 per cent).
The average age at claim was 65 while the youngest claimant was 28.
tom.dunstan@ft.com
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