Payouts up £22 million during 2012. Aviva pays £1.3 million pounds a day, or £902 per minute to policyholders
Aviva policyholders and their families received more than £475 million during 2012 when they claimed on life insurance, critical illness cover or individual income protection policies in 2012. This equates to more than £1.3 million pounds a day, or £902 per minute.
The figures include £324 million (up £4m from 2011) paid to the families of life insurance policyholders who have died or been diagnosed with a terminal illness, and over £131 million (up £17m from 2011) paid to customers with critical illness (CI) cover. Payments to income protection customers totalled almost £15 million (up 1.3 million from 2011).
The statistics also reveal that during 2012 Aviva made payments for 10,880 life insurance claims (up 385 from 2011), 1,716 CI claims (up 148 from 2011) and 1,130 individual IP claims (compared to 1,227 in 2011).
Over the year Aviva paid 99.3% of life insurance claims, 93.5% income protection claims and 92.5% of critical illness claims. Of claims which were declined, 0.7% of life insurance claims, 0.4% of individual IP claims and 1.7% of critical illness claims were declined due to non-disclosure.
Robert Morrison, chief underwriter for Aviva says: “Our latest figures are great news for all families who have protection or are thinking of taking out cover. Protection policies are the types of products no-one ever wants to claim against, but the financial comfort they offer at a difficult time cannot be underestimated.”
Key statistics for 2012 include:
- The average length of claim for an income protection policy was 113 months (nine years and five months).
- The most common causes for IP claims were psychiatric conditions (30%); orthopaedic conditions (21%); neurological conditions (18%); rheumatological conditions (10%); and cancer (8%).
- The average age for IP claimants was 52 years for women and 55 years for men.
- The average sum paid to critical illness customers was £76,499 (up £2,908 from 2011).
- The average age of critical illness customers was 44 years for women and 46 years for men
- Cancer remains the most common cause of critical illness claims at 66%, followed by heart attack (12%), stroke (7%), multiple sclerosis (5%) and benign brain tumour (3%).
- Over the last five years the same top five conditions have accounted for more than 92% of Aviva’s critical illness claims paid overall.
Mr Morrison continued: “Almost 14,000 of our customers and their families benefited from payments last year, so people can be reassured that we are absolutely committed to paying claims wherever possible. This is borne out by our latest claims statistics. We will continue to work with our customers to ensure if they need to make a claim, their journey is as quick and straightforward as possible.”
These claims figures do raise the question. Why can’t critical illness and income protection claims payout figures not be between 98-99% like life insurance claims?