2021 Saw More Insurance Claims For Musculoskeletal Conditions, But Fewer Mental Health Claims
by Liz Seyi Digital marketing managerNew statistics released by the Association of
British Insurers (ABI) paint a fascinating picture of how our needs in relation
to protection insurance have evolved over the last few years.
The ‘headline’ finding was that a record £6.8
billion was paid out in group and individual life
insurance, critical illness and income protection claims over the course of
2021 - the equivalent of £18.6 million a day, which was £1.6 million more a day
than the previous record set in 2020.
The ABI stated that there had been a “bumper” rise
in individual protection claims, despite a fall of 1.6% in the total number of
new claims made; the trade association attributed this to a greater number of
individual term assurance and critical illness claims, which have much higher
values.
Sure enough, term assurance policies during 2021
had an average claim payment of £61,944, while for critical illness, the
equivalent figure was £67,500, with these amounts being described by the ABI as
“consistent with 2020”.
An increase in the average individual payout in 2021
means that this measure has now gone up for three consecutive years. The
average claim value during the year was £14,994, which was 9% higher than
2020’s figure.
But what about the changing
nature of our needs from protection cover?
As insightful as the above findings are, here at QuoteLifeCover, our heads were
particularly turned by the data provided in relation to the types of claims
made - and what this says about our evolving relationship with protection
products such as income
protection insurance.
The ABI said that there had been a 40% increase in
claims for musculoskeletal conditions, for example. Individual income
protection claims made in relation to these conditions reached 5,012 last year.
This, in turn, raises the question of whether increased homeworking might have
led to many people working in less-than-suitable working environments, and
consequently suffering from back problems.
But on the other hand, while 2020 had seen a
significant rise in mental health claims under individual income protection
insurance, such claims plummeted by nearly 20% in 2021. They were still above
2019’s figure, however, which suggests that the adverse mental-health impacts
of the COVID-19 crisis continued to reverberate through the pandemic’s ‘second
year’.
And on the subject of COVID-19, payouts for
individual claims related to the pandemic nearly doubled during the year, to
£261 million, despite the number of claims barely changing from 2020’s figure.
This was because of a 69% rise in term assurance claims - ‘term assurance’
being another name for term life insurance - with the average payment for this
type of claim being £69,760.
The overall number of individual income protection insurance claims fell over the course of
2021, from 17,000 to 14,600. The ABI suggested a number of possible factors in
this decrease, such as higher unemployment levels, a lot of people still being
on the UK Government’s furlough scheme, and insurers prioritising ‘early
intervention’ offerings, such as specialist support services, that might have
decreased the likelihood of someone making a claim.
Whatever protection insurance
you’re in the market for, QuoteLifeCover is available to help
Are you reading this as someone with an interest in
purchasing a protection insurance product such as critical illness cover, life
insurance, or income protection insurance, but are unsure what your next steps
should be?
In that case, giving our no-obligation advice and
quotation line a call could be an excellent such step to take. We are available
for free on 0800 316 6917, and when
you reach out to us, our UK adviser will discuss your situation and requirements,
and help you make sense of the sometimes confusing and overwhelming world of
protection cover, so that you can find only the very best solution.
Sponsor Ads
Created on Oct 7th 2022 01:22. Viewed 192 times.