Association of British Insurers (ABI) figures show equivalent of over £550,000 per day was paid in Covid-19 death claims in 2020
According to the figures, there were 11,198 claims received under individual and group life insurance policies. Of these, 10,205 were individual policies (whole life, term insurance and critical illness claims) with 993 on group life insurance schemes.
A total of £202m was paid out throughout the year on 96% of individual and 99% of group claims, with the ABI stating that remaining valid claims “are being processed as quickly as possible.”
The average pay out on individual policies was £13,100, while group policy pay outs averaged £74,600. The pay outs included £250,000 made the day after notification of death and a £1 million payment to dependants.
The ABI states that this is the first instance of it collecting life insurance pay out data from a single event, reflecting the “unprecedented pandemic.”
Yvonne Braun, the ABI’s director of long-term savings and protection, said: “No one will have been affected by the pandemic more than the families of those who have tragically died due to Covid.
“While no amount of money can ever replace a life, insurers have and continue to do everything they possibly can to help families cope financially through these distressing and worrying times.”
Across all insurance products, including business interruption and travel insurance, ABI members expect to pay up to £2.5 billion for Covid-19 insurance claims incurred in 2020.
Commenting on the ABI figures, Craig Paterson, chief underwriter at Royal London, said: “Despite 2020 being an unpredictable year, we continued to pay claims promptly and support our customers. The pandemic has shown the importance of having protection in place and we have paid £13.1 million in Covid-19 related claims.
“We also continue to offer support through our Helping Hand service which provides customers and their families with access to a dedicated nurse who is able to give tailored and personal support to get them through a difficult time, including coping with ‘Long-Covid’ symptoms.”
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