Scottish Widows paid out a total of £199m in protection claims last year, down from £207.9m in 2021.
More than 98% of all protection claims were paid out to a total of 10,107 life and critical illness policyholders.
The insurer’s 2022 claims data revealed a 15% reduction in the value of life claims paid out coinciding with a 15% increase in the value of critical illness claims over the year.
The figures also pointed to the fourth consecutive year the percentage of protection claims approved reached over 98%.
This was despite an 11% rise in critical illness claims numbers compared to the previous year, where the insurer noted claims dipped due to the pandemic and additional pressures on the NHS.
The data showed that 99.4% of life claims and 93.3% of critical illness claims were paid out in 2022, representing 8,555 and 1,552 claims respectively.
This compared with 2021 where 99.3% of life claims representing 9,035 claimants and 93% of CI claims representing 1,391 claimants were paid.
Over the year over £199m was paid out in total, at an average of just over £3.8m per week and almost £800,000 per working day.
Cancer remained the most common reason for critical illness claims (63%) and life insurance (33%).
The most common cancer claims in men were for prostate (22.4%), bowel cancer (16.3%), malignant melanoma (6.3%) and Hodgkin’s lymphoma (6.3%).
Among women the most common types of cancer were breast cancer (52.8%), bowel (9.4%), uterine or cervical (7.4%), ovarian (4.5%), and malignant melanoma (3.7%).
Increased use of Clinic in the Pocket
The insurer also recorded a 67% year-on year increase in the use of its Clinic in the Pocket among customers.
The service is part of the Scottish Widows Care package launched in May 2021, which is available to all customers and delivered through Square Health.
Around two thirds (63%) of Clinic in the Pocket consultations were booked by customers aged 26-45, with 40% having already used the service.
The most common symptoms consulted on were about skin issues, including moles and lumps (18%), cold or flu symptoms (12%), and children’s health (11%).
Life claims
- In 2022 the total amount paid out in life claims was £112.8m, down 15% from £132.9m in 2021
- Over £8m paid was in terminal illness claims.
- More than four in 10 (42%) of all claims from women were as a result of death from cancer, compared with 28% of men.
- Heart-related claims accounted for 28% of cases for men, compared to 12.5% of cases for women.
- The average life claim paid was £53,553, almost 3.5% more than the year before and the highest individual claim was £660,000.
Critical illness claims
- The total amount paid out in critical illness claims was £86.2m, 15% up on 2021
- Cancer was the primary reason for making a claim at 63% of all cases; this was followed by heart attack (11%) stroke (9.2%), and multiple sclerosis (3%).
- Among men, just over 50% of claims made were for cancer, followed by heart attack (20%) and stroke (12%).
- In women, almost 75% of critical illness claims were for cancer, followed by stroke (almost 6.5%) and multiple sclerosis (5%).
- The average critical illness claim paid was £55,546 and the highest individual claim was just over £800,000.
Under-45s spearheading digital shift
Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, said: “We know that 2022 was a tough year for many people, with the current cost of living pressures, as well as our health service still struggling with pandemic-related issues and often delayed diagnosis and treatments.
“That’s why I am proud to see that year-on-year we continue to deliver on our promise to protect and support our customers in their difficult moments.
“The impact of those pressures is manifested by the 63% rise in users of our Clinic in the Pocket service, offering 24/7 access to GP services and prescription delivery.
“Our data is telling us that 26-45 year-olds are spearheading the digital shift, which may in turn free up valuable NHS in person appointments as getting advice on symptoms as early as possible can make a huge difference for most conditions.
“Early diagnosis remains crucial as our data highlights that cancer continues to be the main cause of death and critical illnesses among our customers.
“This underlines the importance of our partners Macmillan, RedArc and others to be able to help provide the right support and advice when it matters the most.”