Insurers paid out a file quantity to assist households deal with bereavement, in poor health well being and harm final 12 months, based on the Affiliation of British Insurers (ABI).
The insurance coverage business paid out £6.2 billion in life insurance coverage, revenue safety and important sickness claims in 2020, marking the very best whole on file and up 8% on 2019, the figures from the ABI and one other business physique, Group Danger Improvement (GRiD), confirmed.
This was the equal of £17 million being paid out each day.
Earlier this 12 months the ABI printed figures highlighting that £202 million was paid by insurers in 2020 to assist the households of those that had been affected by Covid-19.
These newest figures additionally confirmed a rise within the proportion of psychological well being claims made underneath particular person revenue safety insurance policies – up from 10% to 12% in 2020.
Earnings safety insurance policies assist fill revenue gaps when an individual is unable to work resulting from sickness or harm. They are going to normally cowl a proportion of the policyholder’s wage and can typically present help providers to assist workers again into work.
This additional highlights the influence of the pandemic on the psychological well being of the UK inhabitants, the ABI mentioned.
The physique not too long ago launched a psychological well being coaching platform, developed with psychological well being specialists, aiming to assist practice 5,000 advisers and front-line insurer workers to raised have interaction with clients who disclose a psychological well being situation.
The ABI additionally famous a 6% fall within the variety of crucial sickness claims paid final 12 months. It mentioned this will partly be resulting from some sicknesses going undiagnosed through the stress on medical providers within the midst of the pandemic.
Important sickness cowl supplies help when persons are recognized with sicknesses equivalent to most cancers.
Paul Brencher, managing director, particular person safety at Aviva UK and chair of the ABI’s safety board, mentioned: “The monetary dangers from ill-health are usually not new, however the pandemic has dramatically highlighted how the monetary resilience of households might be so simply examined.”
Charlie Campbell, the ABI’s supervisor, well being and safety, mentioned: “The file payout to assist households deal with dying, sickness and harm reveals how insurers give very important monetary help to their clients throughout what are tough and anxious instances.
“The pandemic bolstered simply how priceless the safety supplied by insurers has been. The excessive variety of claims paid ought to give folks confidence they will belief that their insurance coverage supplier can be there after they want them.
“Nonetheless, non-disclosure of related medical data, and the situation not being lined, had been the 2 predominant causes for the two% of claims that had been declined.
“This emphasises the necessity for patrons and advisers to reveal all related well being data when making use of for canopy, and for insurers to proceed to enhance the readability and understanding of what’s and what’s not lined.”