Insurers pay £5b in claims
New figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out a record £5bn in protection claims in 2017 – representing an increase of more than £340m year-on-year.
Overall, virtually all protection insurance claims (97.8%) were paid in 2017.
Protection insurers paid out nearly £14m every day through products such as income protection, critical illness or life insurance.
In individual protection, the number of claims paid increased by more than 20,000 year-on-year. The total value of claims paid for critical illness passed £1b for the first time ever, with the average claim increasing to £73,000.
In group protection, as well as supporting a record number of families with a financial payment, group risk insurers helped nearly 5,000 people back to work after a period of sick leave and a further 7,900 were assisted by the industry during 2017 through referrals to help and support, funded by group risk insurers.
Roshani Hewa, assistant director, head of health and protection at the ABI, said, ‘Protection products provide vital financial support in people’s time of need. To see that the industry has collectively supported families with more than £5bn in 2017 for the first time ever is incredibly positive.’