2015 breaks protection records
1st June, 2016
Figures from the Association of British Insurers (ABI) have revealed that nearly £10m in critical illness, life insurance and income protection, is currently being paid out every single day to those in need of a financial safety net in the event of serious illness, injury or even death.
A total of £3.6bn was paid out in protection insurance claims in 2015, which has beaten previous records. Nearly 130,000 customers or families were helped in 2015, which translated to an average individual pay out of £28,000 across life insurance, critical illness and income protection. Overall, 97.2% of protection claims are paid, with the rest being declined only for invalid conditions or non-disclosure.
Advisers and providers have worked hard to raise awareness with consumers, which has resulted in the strong 2015 sales and claim statistics. Yvonne Braun, ABI Director of Policy, Long-term Savings and Protection, highlighted that “insurance can help to relieve the financial strain on families following a death, serious illness or injury”.
The signs are also looking strong for 2016 as well, with several providers announcing an increase in protection sales this year already. Aegon have increased their protection sales in the UK by 18% in the first quarter of 2016, compared to the same time last year. The first quarter of 2016 was also a great year for Royal London. Their intermediary protection sales went up by an impressive 37% to £147m, according to the provider’s new business results for the 3 months ending 31 March.
These figures are increasing the belief that the UK’s protection gap can indeed be narrowed. With more people seeing the real need for protection through better awareness, advisers are finding talking to clients about protection a much clearer process. Contact us today if you would like to talk to us about finding the right critical illness or life policy for you.