26 Apr 2016

Aviva pays £839 million to protection customers during 2015

In 2015 Aviva paid more than £839 million to individual protection customers and their families via claims on Aviva and Friends Life life insurance, critical illness and income protection plans.

Aviva bought Friends Life in April 2015 and the combined company paid more than £500 million to the families of life insurance customers who died from a terminal illness that year.

£303 million was paid out to customers with critical illnesses and an additional £35 million went to customers with income protection plans. Income protection plans help customers to meet their living costs when they have been unable to work due to illness.

Statistics showed that last year more than 23,000 customers and their families had benefitted from life, CI and IP claims. The 23,000 customers included 15,000 life and terminal illness claims, more than 4,000 critical illness and almost 4,000 income protection claims.

Out of the claims made in 2015, 98.9 per cent of the life insurance claims and 92.5 per cent of critical illness claims were paid.

The percentage was 93.5 per cent of Aviva critical illness policies, up by 0.2 per cent from 2014 and 91 per cent of Friends Life policies compared to 93.3 per cent in 2014.

The critical illness claims which were not paid were due to 1.6 per cent being declined due to non disclosure and 5.9 per cent for conditions required not being met.

Out of all the claims made, the average sum paid to critical illness customers was £74,275.

The average age of Aviva critical illness customers who claimed was 45 years old for women and 49 years for men.

63 per cent of all critical claims were linked to cancer, making it the most common cause of critical illness claims in 2015. This was followed by heart attacks at 10 per cent, strokes at 6 per cent, and multiple sclerosis and total permanent disability both at 4 per cent.

The chief underwriter for protection at Aviva, Robert Morrison said: “No one ever wants to claim against this type of policy, but knowing that as a combined group we are committed to paying claims wherever possible will provide customers and their families with the reassurance and comfort they need if they face such difficult times.”

By Samantha Atherton