| In 2023, protection insurers paid out a record £7.34bn in claims in, supporting those facing bereavement, illness and injury. | The total value of critical illness claims rose to £1.2bn, with cancer the most common reason for claiming. | Over 1,660 income protection claims have been paid out for more than 10 years, highlighting the value of insurance. |
Latest data1 reveals a record £7.34bn was paid out in protection claims in 2023, supporting those facing bereavement, illness and injury. This equates to around £20.1m in daily payouts, underscoring the vital role of protection insurance in safeguarding financial stability.
Individual protection policies accounted for £4.85bn of this total, covering more than 275,000 claims across life insurance, income protection and critical illness. Notably, the total value of individual critical illness claims rose to a record £1.2bn, a 13% increase from 2022. The average critical illness claim reached £67,267, with cancer remaining the top cause for claiming, amounting to a total of £777m in claims in 2023.
Income protection claims also saw a rise year-on-year, totalling £177m – up by 2% from the previous year. While musculoskeletal issues led the number of claims, mental health issues represented the highest total claim values at £37m. Significantly, over 1,660 income protection claims have now been paid out for more than 10 years, with 376 of these extending over 20 years, highlighting the long-term benefits of such cover.
Reassuringly, claims acceptance remains high, with 98.3% of claims approved, reflecting the reliability of protection policies. However, common reasons for declined claims include non-disclosure of pre-existing conditions or not meeting policy criteria.
These figures emphasise the importance of protection insurance for financial security in times of need. For valuable peace of mind, discuss your protection needs with us.
1ABI and GRiD, 2024
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.