Zurich saw a 23 per cent increase in the value of life, critical illness and income protection payouts made in 2020, compared to the previous year, with life claims up by 27 per cent, but CI claims down by 15 per cent.
Over 6,000 life, critical illness and income protection customers have received payments worth over £354m.
Life insurance payments increase by more than a quarter to £279.6m but there was a 15 per cent drop in critical illness payments, with customers unable to access treatment and diagnosis.
The insurer says £20m of life insurance claims are directly linked to Coronavirus, with the youngest claimant aged just 34. Men accounted for two thirds of all claims
Mental illness accounted for over a quarter of income protection claims, totalling almost £1.7m, followed by 22 per cent for cancers.
Claims paid for life, critical illness and income protection policies
| Payments | % Paid | Declined claims | |
| Life Insurance | £279.6m | 98% | 2% |
| Critical illness | £64.7m | 87% | 13% |
| Income Protection | £6.6m | 85% | 15% |
According to Cancer Research UK, three million people have missed out on cancer screening because of Coronavirus, with nearly a million women missing out on testing for breast cancer alone. The charity estimates there could be 8,600 women who are now living with the disease undetected. Zurich says this is a particular concern given breast cancer continues be the most common cause of its critical illness claims, at 19 per cent of claims.
Zurich’s life insurance claims directly related to Covid have been valued at around £20m with £15m already paid out and more expected in the coming months. The average age of claimants was 78 with the youngest just 34. Women accounted for 35 per cent of claims, compared to 65 per cent for males.
Claims for customers with income protection policies also decreased, with £6.6m worth of benefits issued in 2020 compared to £7.2m in 2019. Mental illness accounted for 27 per cent of claims, followed by 22 per cent for cancers and 20 per cent for musculoskeletal conditions.
Peter Hamilton, Zurich’s UK head of market engagement said: “While these figures help to reinforce the fact that life insurance continues to support people and their loved ones through and following illness, the fall in critical illness claims is a worry if it means customers aren’t getting the diagnoses and treatment they need. Finding and addressing problems early can reduce long term impacts and we would encourage all customers to seek appropriate help and treatment both via the NHS and through any support they have with their cover.
“Though 2020 has presented us all with challenges, it has been reassuring to see at first hand, how protection cover has made such an enormous difference to so many customers and their families at what is likely to have been the most difficult time of their lives.”