ICMIF member Royal London, the UK’s largest mutual life, pensions and investment company, has this week announced that it paid 99% of all protection claims in 2023.
According to the individual claims data published by the mutual, it paid out over 77,000 protection claims, totalling a record total of GBP 731m, which is GBP 100m more than 2022. The highest individual payout, says Royal London, was for GBP 4m.
More than just money
In addition to the crucial financial support of a protection policy, health and wellbeing services are available at any stage throughout the life of the policy thanks to Royal London’s Helping Hand support service. Over 4,300 customers registered for Helping Hand in 2023, enabling them to benefit from extra help through things like virtual GP consultations, musculoskeletal, physio and mental health support.
A vital element of these value-added benefits, says Royal London, is the dedicated nurse support provided through RedArc. The caring and practical support is something that many individuals and businesses consider just as important as the financial support. This service proved to be a lifeline for over one thousand customers and their families last year who received support with a cancer diagnosis (18%), mental health wellbeing (17%), musculoskeletal issues (16%) and bereavement support (14%).
Life Insurance
More than GBP 228m was paid in Life Insurance and Terminal Illness claims in 2023. A total of 2,396 claims were paid, averaging GBP 95,371 per claim.
Whole of Life
Nearly a third of a billion (GBP 315m) was paid out in whole of life claims with 99.9% of claims paid. The mutual insurer reported having paid over 70,000 claims, averaging GBP 4,461 per claim.
Critical Illness
Royal London paid 90.5% of Critical Illness (CI) claims in 2023, averaging more than GBP 68,000 per claim and a total of more than GBP 173m. A total of 6.8% of critical illness claims were declined due to not meeting the policy definition. The most common reasons for an adult CI claim were cancer (66%), heart attack (9%) and stroke (9%).
Income Protection
The mutual insurers says around GBP 6.5m was paid out in income protection (IP) claims last year. The most common reasons for an IP claim were musculoskeletal (54%), cancer (10%) and mental health conditions (4%).
Craig Paterson, Chief Underwriter at Royal London, said: “Last year’s figures, a record total of GBP 731m supporting over 77,000 families and businesses, is an endorsement of why we’re 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.
“However, as well as providing a financial lifeline, emotional support can often be needed too and Helping Hand is there to support clients deal with a shock diagnosis, recover from illness or come to terms with bereavement,” Paterson concluded.
