Royal London paid out £631m in protection claims in 2022 approving 99.4% of all claims and paying benefits to almost 80,000 customers and their families.
This compares with the previous year’s data when the insurer paid out £632m in claims to more than 84,000 claimants and approved 99.5% of all protection claims.
Life insurance
The mutual paid out more than £182m in life insurance and terminal illness claims in 2022, with more than 2,000 claims paid out, averaging £86,500 per claim.
Across whole of life claims, £312m was paid out in 2022, with 99.9% of all claims paid and 74,000 claims paid averaging £4,211 per claim.
In 2021 the mutual approved 96% of term assurance claims and 95.4% of life insurance claims.
It approved 90.2% of terminal illness claims, paying out £37,180,857 to 266 claimants.
Critical illness
Turning to critical illness, Royal London paid 93.6% of 2,011 CI claims in 2022, averaging more than £65,000 per claim and a total of more than £132m.
This compares with 91.7% of critical illness (CI) claims paid in 2021.
Just 6% of critical illness claims were declined in 2022 with the majority of those due to not meeting the policy definition.
The most common reasons for a CI claim were cancer (65%), heart attack (8%) and stroke (8%).
Income protection
Moving onto income protection (IP), the mutual paid 86% of 508 claims made, this included income protection claims already in payment, with around £2.5m paid out.
The most common reasons for an IP claim identified as musculoskeletal (52%), cancer (10%) and mental health disorders (6%).
The insurer’s Helping Hand service was used by 1,067 customers or their families in 2022. This included orthopaedic (21%), cancer (20%), mental health (15%) and bereavement (11%).
The foundation of all financial planning
Craig Paterson, chief underwriter at Royal London, (pictured) said: “Royal London is always looking at ways to pay more protection claims and our track record is a strong endorsement of that.
“It’s important to remember that those making a claim come to us at a time when their lives have been turned upside down, so it’s rewarding to play a part in supporting them financially but also emotionally.
“Publishing our claims statistics reinforces the importance of having a financial safety net, providing a financial lifeline when the unexpected happens.
“The pay out from a claim can help those impacted get back on their feet, but the value it provides goes beyond just the money.
“Support through Helping Hand, which is available to people at any time, not just the point of claim, provides invaluable emotional and practical support.
“It’s often overlooked that protection insurance is the foundation of all financial planning, helping to safeguard lifestyles and sustaining future plans which could be unachievable without it.”