Scottish Widows paid out a total of £207.9 million in protection claims in 2021, up from £206m in 2020.
This is according to the insurer’s 2021 claims data which revealed it paid more than 98% of protection claims for a third year in a row, with 10,426 of the insurer’s life insurance and critical illness (CI) policy holders receiving financial support.
Almost £208 million was paid out in total in 2021 at an average of just under £4 million per week – around the same level as 2020, when the insurer paid out on 99.5% of life claims and 94.2% of CI claims.
Life claims
Over the year £132.9 million in life claims were paid out, up 6% on 2020. This included around £9.5m in terminal illness claims. The data also showed 99.3% of claims were paid, representing 9,035 claims.
Almost four in 10 (38.8%) of all claims from women were as a result of death from cancer, compared with 24.6% of men.
Heart-related claims comprised 20% of cases for men, compared to 9% of cases for women.
The average life claim paid was £51,754, almost 12% more than the year before and the highest individual claim was £1 million.
CI claims
In 2021 the insurer paid out £74.9 million in CI claims, with 93% of CI claims paid, representing 1,391 claims.
The data indicated a 5% drop in CI claims volume compared to 2020 figures, and 17% since 2019 which the insurer said could be down to a number of factors. This included some people still not feeling able to seek medical advice due to the ongoing pandemic and the continued pressure and disruption faced by the health service in the UK.
Cancer was the main reason for women making a claim at almost 64% of all cases; this was followed by heart attack (10.8%) stroke (7%), and multiple sclerosis (4%).
Among men, almost 50% of claims made were for cancer, followed by heart attack (15.7%) and stroke (9.5%).
For women, almost 78% of CI claims were for cancer, followed by stroke (almost 5%) and heart-related conditions (4%).
The average CI claim paid was £53,912 and the highest individual claim was just over £1 million.
Cancer remains most common reason for claims
The figures indicate that cancer remains the most common reason for CI claims (63.8%) and life insurance (29.6%). The most common cancer claims in men were for bowel cancer (14.7%), prostate (14.4%), malignant melanoma (7.3%) and Hodgkin’s lymphoma (6.2%). In women the most common types of cancer included breast cancer (52.5%), bowel (9.6%), uterine or cervical (6.4%) and malignant melanoma (6.2%).
Uplift in advance CI payments
To help customers cope with the additional financial burden a cancer diagnosis can bring amid a cost of living crisis, the insurer has announced an uplift in advance payments for CI from £2,000 to £3,000 from 1 May 2022. This is offered as a lump sum at any stage of the claim to help customers cover any additional costs while their claim is being processed.
In 2021 336 Scottish Widows customers were supported by Macmillan Cancer Support services through their partnership, with additional benefits totalling over £140,000.
Scottish Widows paid out 1,066 Covid-related claims totalling over £13 million in 2021 – a 64% increase in claim volumes since 2020, with an 85% rise in financial support provided to families affected by Covid-19 last year compared to the prior year.
The insurer also revealed Square Health’s Clinic in a Pocket, a 24/7 GP appointment and prescription delivery service offered through Scottish Widows Care service, has seen almost two in five (38%) requests out of the core 8am-8pm hours, with 97% of users offered an appointment within four hours.
Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, said: “When you bring together challenges posed by rising cost of living together with continued emotional and financial impact of the Covid-19 pandemic in its second year, we must recognise the difficulties that families in the UK have been faced with. And while we are very proud to have maintained a payout rate of over 98%, delivering on our promise to protect and support our customers during the toughest of moments, we note the drop in detection of critical illnesses for another year.
“Cancer remains the most common cause of both critical illness and life insurance claims and we must emphasise the importance of early diagnosis. The pandemic has undoubtedly impacted the backlog in the health service and some people may be feeling hesitant to see a doctor about their symptoms, but we would urge everyone to seek medical advice if they notice any changes in their health.
“Early diagnosis, advance payments, Scottish Widows Care personal nurse support and access to Square Health’s Clinic in a Pocket with 24/7 GP appointments and free repeat prescription delivery, could provide additional practical and mental support, financial help and resilience during a difficult time.”