Royal London paid a “record” £731mn in protection claims to more than 77,000 claimants last year.
This was an increase of £100mn on protection claims paid out in 2022.
Royal London chief underwriter, Craig Paterson, said this was an “endorsement” of why the company is in the protection business - “to pay claims and to be there for customers during life shocks”.
“Our claims paid record not only provides reassurance to clients that valuable financial support is there when it’s needed most, it also demonstrates the importance of having a safety net in place as part of an individual’s overall financial planning,” he added.
Royal London paid out £228mn on 2,396 life insurance and terminal illness claims - an average of £95,371 per claim.
Meanwhile, £315mn was paid out on whole of life claims with 99.9 per cent of claims paid.
The mutual insurer paid over 70,000 claims, an average of £4,461 per claim.
Royal London paid out 90.5 per cent of its critical illness claims, averaging more than £68,000 per claim for a total of more than £173mn.
It added that 6.8 per cent of critical illness claims were declined due to not meeting the policy definition.
Lastly, around £6.5mn was paid out in income protection claims in 2023, with the most common reasons for claims being musculoskeletal, cancer, and mental health conditions.
Value-added benefits
In addition to the financial support of a protection policy, Royal London also gave insight into how many of its customers had access to health and wellbeing services associated with their policy.
It reported over 4,300 customers registered for Helping Hand in 2023 which enables them to benefit from extra help through things like virtual GP consultations, musculoskeletal, physio, and mental health support.
Royal London described this as a “lifeline” for over one thousand customers and their families last year who received support with a cancer diagnosis, mental health wellbeing, musculoskeletal issues, and bereavement support.
tom.dunstan@ft.com
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