Aviva paid out a total of £1,094,919,735 in 2021 across individual critical illness, life insurance and income protection policies, with 98.1% of all claims received settled.
The insurer’s annual individual protection claims report also revealed more than 53,700 customers and their families were helped financially last year when they claimed on their individual protection policy.
The scale of the payout was equivalent to around £3m in payments made to customers every day, the insurer said.
In the last five years, Aviva has paid out around £5bn across more than 187,000 individual protection claims, with 97.7% of all claims paid.
Impact of Covid
Individual protection claims related to Covid continued into 2021, with most of the £68.9m paid out relating death claims.
From the start of the pandemic in March 2020 until the end of 2021, Aviva paid out more than £107.8m in Covid related individual protection claims, predominantly on life insurance and income protection.
Around 2,000 death claims due to Covid-19 were paid in 2021, totalling £68.5m. Covid was the third most common reason for a life insurance claim last year, but following the vaccine roll out Covid claims dropped considerably across all age groups.
Aviva also supported larger numbers of individual income protection customers affected by Covid than in 2020, as long Covid symptoms became more prevalent. Just over £376,000 in benefit payments were made last year to support customers unable to work due to the syndrome.
Following the introduction of a specialist long Covid income protection claims pathway, 91% of individual income protection customers who received support for long Covid went back to work in 2021. Rehab support specifically for long Covid accounted for 12% of all rehab support provided in 2021.
Total individual protection claims paid in 2021
| Number of claims paid | Value of claims paid | % of claims paid | |
| Life insurance
(inc: terminal illness benefit) |
43,954 | £731,647,930 | 99.4% |
| Critical illness
(inc: Children’s Benefit+TPD) |
4,367 | £309,693,179 | 92.4% |
| Income protection | 4,300 | £51,206,137 | 85.4%1 |
| Fracture cover | 815 | £1,960,215 | 87.6% |
| Hospital and trauma cover | 277 | £412,273 | 99.3% |
| Totals | 53,713 | £1,094,919,735 | 98.1% |
Life insurance claims
Last year Aviva accepted 99.4% of all life insurance claims, helping just over 43,900 customers and their families with life insurance and terminal illness benefit payments. More than £731.6m was paid in claims.
Cancer continued as the most common reason for claim at 36.6% of all claims, followed by cardiovascular (19.5%), Covid (11.8%) and respiratory (7.9%). Covid was the third most common reason for claim for all customers aged 40-69.
Life insurance (including terminal illness benefit) claims paid by age, 2021)
| Most common reason for claim by age band | 1st | 2nd | 3rd |
| Under 30 | Cardiovascular | Accident and cancer | |
| 30-39 | Cancer | Suicide | Accident and Cardiovascular |
| 40-49 | Cancer | Cardiovascular | COVID-19 |
| 50-59 | Cancer | Cardiovascular | COVID-19 |
| 60-69 | Cancer | Cardiovascular | COVID-19 |
| Over 70 | Cancer | Cardiovascular | Respiratory |
Critical illness claims
The data shows £309.7m was paid out for critical illness claims last year, including £4.7m in children’s benefit, with 92.4% of all claims received being settled. The average adult claim was £73,969.
The number of critical illness claims paid increased on 2020, but remained lower than before the pandemic as the impact of delays in medical diagnosis and treatment continue to show in claims received. In total 4,367 CI claims were paid in 2021, compared to 4,294 in 2020 and 4,957 in 2019.
Of the 7.6% of claims declined, 5.5% was because the definitions in the policy were not met while 1.8% was because the customer misrepresented relevant health and lifestyle information during the policy application.
The three big causes for critical illness claim continued to be cancer (59%), heart attack (11%) and stroke (7%).
Income protection
Around 4,300 individual income protection customers had claims accepted during 2021, with 85.4% of all new claims paid and a total of £51.2m paid out to them.
Of the new claims, 6.7% were declined due to the customer misrepresenting relevant health and lifestyle information, 4.7% were declined for other reasons and 3.2% declined as the policy conditions had not been met.
Almost a third (32%) of customers paid last year were under 40 when their claim started, with the average age of claim lower for women at age 42 than men at age 44.
Musculoskeletal conditions continued to be the largest cause for new claims accounting for 37% of all claims, followed by mental health at 21%, other conditions at 12% and cancer at 11%.
Aviva’s income protection claims team also worked with customers to identify where it was appropriate to help them get back to work through its rehabilitation support services. Last year, around eight in 10 customers (78%) who had rehabilitation support returned to work.
CI claims delayed
Jacqueline Kerwood, claims philosophy manager at Aviva, noted that 2021 was a year when society had to manage many major issues including the continuing impacts of Covid-19.
“We saw some of these impacts in our protection claims experience, with mental health claims continuing to be prominent on income protection alongside a rise in claims for long Covid,” she said.
“Life insurance claims due to Covid-19 also continued, although thankfully these did reduce considerably over the year as the vaccine rolled out.
“Fewer critical illness claims were presented to us than before the pandemic due to delays in diagnosis and treatment of serious conditions, but we did see claims numbers increase on the previous year.
“Helping more than 53,700 families with payouts last year highlights the real financial vulnerability that many households without cover could face if they were unfortunate enough to experience significant illness or the loss of a loved one.
“This vulnerability will sadly only be exacerbated by today’s cost of living crisis and never has it been as important to have and keep some protection insurance in place.”