Scottish Widows paid out more than £206m in protection claims in 2020, including paid 650 Covid-related claims totalling just over £7m.
The insurer revealed it paid out more than 98% of protection claims in the past 12 months with 99.5% of life claims and 94.2% of critical illness claims paid out, representing 9,227 and 1,485 cases respectively.
An average of just under £4m per week was paid out in 2020, around the same level as 2019 when the insurer paid out on 99.4% of life claims and 93% of critical illness claims.
The insurer revealed it also made it easier to make a claim by introducing online claims forms, providing a £2,000 advance payment for critical illness claimants and accepting digital birth, marriage and death certificates during the process.
However, there was a reduction in critical illness claims received in 2020 with 1,576 claims received in 2020 versus 1,800 in 2019, representing a 12% decrease.
Cancer dominates claims
The amount paid out in life claims was £125m, with £8.6m paid in terminal illness claims – 44.5% of all claims from women were as a result of death from cancer, compared with 32% of men.
Heart-related claims made up 25% of cases for men, compared to 14% of cases for women.
The average life claim paid was £46,401 and the highest individual claim was over £565,045.
The total amount paid out in critical illness claims was £81m. Cancer was the chief contributory factor to women making a claim at 75% of all cases; followed by stroke (5%), heart attack (3%) and multiple sclerosis (4%).
Among men, 52% of claims made were for cancer, followed by heart attack (19%) and stroke (7%).
The average critical illness claim paid was £55,182 and the highest individual claim was £502,551.
Commenting on the claims data, Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, said the group was proud that it had maintained a claims payout rate of over 98%.
“This means that as an insurer, we have continued to support families during some of their most difficult moments,” he said.
“Our data has also shown that we have seen a decline in critical illness claims received for cancers, stroke and tumours, but the percentage of critical illness claims paid out was in line with 2019.
“It’s understandable that people may be hesitant about seeing the doctor in the current climate, but they should still seek medical advice if they notice any changes in their health. Getting help early could make all the difference when it comes to diagnosing and treating conditions.”