The insurance industry paid out more than £5.3 billion in protection claims in 2018

Protection insurance ensures peace of mind for many as record number of protection claims are paid.

protection claims

New figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.3 billion in protection claims in 2018 – a £200 million increase year-on-year.

The numbers also revealed that:

 The number of claims paid surpassed 200,000 for the first time ever

 Nearly every claim made was paid (97.6%)

 Average life insurance payouts reached £81,000, the highest average on record

 More than 35,000 families/beneficiaries were supported following an unexpected bereavement, to the tune of £2.9 billion

 Payouts equal to £14.5 million paid every single day

The ABI recently launched a calculator to help consumers better understand their financial exposure to income shocks caused by being left unable to work after falling ill or injured. Percy The Protection Calculator can be found on the ABI’s website

Roshani Hewa, Assistant Director, Head of Health and Protection at the ABI, says:

“It’s good to know that families going through some of the worst times, dealing with a loss and serious injury or illness, are at least getting more support from insurance products than ever before. The growing size of a typical life insurance claim shows how much of a difference such cover can have, and the potential difficulties families without it might face.

“Falling ill or being injured can be traumatic, especially if you find yourself unable to work. Protection insurance is there to ease the financial burden, so it’s heartening to see the levels of protection showing such positive growth, particularly considering the excellent mental health support many products provide.”

Figures for the whole protection market (individual and group):

Products	Claims Paid	Percentage new claims paid	Total value paid (000s)	Average value of claim paid
Critical Illness	16,452	91.6%	£ 1,166,872	£ 70,925.83
Term Life Insurance	35,470	97.4%	£ 2,882,604	£ 81,268.78
Total Permanent Disability	476	70.2%	£ 36,781	£ 77,271.01
Whole of Life Insurance	121,822	99.98%	£ 577,453	£ 4,740.14
Income Protection	25,843*	88.1%	£ 648,815	£ 22,058.45**
All Protection Products	202,738	97.6%	£ 5,312,524

* Includes figures from the Association of Financial Mutuals

**This is the total number of claims in payment at the end of the year

Give yourself the peace of mind that you and your family deserve by getting in touch so we can find a protection policy that suits you and your situation. For more information go to Brighton Mortgage Broker – The Finance House