View more on these topics

Protection industry paid out £3.1bn in 2013

The UK individual protection industry paid out an average of £8.4m every day across life, critical illness and income protection claims in 2013, figures show.

Data published by the Association of British Insurers reveals a total payout of £3.1bn in the year, to some 99,000 families.

The average term life insurance claim was £51,500, with 98.4 per cent of all life claims paid out totaling £1.3bn.

Whole life claims averaged £10,300 with a 99.9 per cent payout rate. A total of £449m was paid in whole life claims across the industry in 2013.

A total of 12,004 IP claims were paid in the year, some 91 per cent of all IP claims made. The average pay out was £11,500 per claim, paying out for 230 weeks.

The total IP payout in 2013 was £138m.

The largest average payouts were for total permanent disability, with average claims of £66,700. Some 62 per cent of claims were paid for TPD in 2013, with a total payout of £28m in the year.

ABI head of protection Helen White says: “Industry initiatives such as the ABI’s code of practice on non-disclosure have led to a fall in the percentage of claims declined from 8 per cent in 2007, as customers have become much more aware of which information they need to share with their insurer.

“It is encouraging to see this has resulted in a continuing fall in the percentage of claims that are declined; insurer are committed to helping consumers make informed decisions about which protection insurance product is right for them and how to avoid having them declined.” 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. It’s a pity the general public don’t know more about this aspect of our profession.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com