May 27, 2022
How many claims did Scottish Widows payout in 2021?

How many claims did Scottish Widows payout in 2021?

Scottish Widows announced total claims payouts of £207.9 million for life and critical illness last year. Scottish Widows paid out more than 98% of all claims received.

Life claims

The insurer recorded a 1% year-on-year rise in annual claims paid out from 2020’s total of £206m, representing:

  • Scottish Widows paid 99.3% of life claims a total of 9,035 claims
  • Life insurance payouts totalled £132.9m, a year-on-year increase of 6%
  • £9.5m was paid out on terminal illness claims
  • The average life claim paid was £51,754, almost 12% more than the year before
  • The highest individual claim was £1m
  • Cancer was a large cause of life insurance claims (29.6%)
  • 38.8% of all claims from women were as a result of death from cancer, compared with 24.6% of men
  • Heart-related claims accounted for 20% of cases for men, compared to 9% of cases for women

Critical illness claims

  • 93% of critical illness claims last year
  • Representing1,391 claims
  • Critical illness payouts totalled £74.9m in 2021
  • The average critical illness claim paid was £53,912
  • The highest individual claim was just over £1m
  • Cancer was once again the most common reason for critical illness claims (63.8%)
  • Cancer is the top reason for a claim among women and men, followed by heart conditions and stroke
  • The most common cancer claims in men are for:
  1. Bowel cancer (14.7%)
  2. Prostate (14.4%)
  3. Malignant melanoma (7.3%)
  4. Hodgkin’s lymphoma (6.2%)
  • In women, the most common types of cancer include:
  1. Breast cancer (52.5%)
  2. Bowel (9.6%)
  3. Uterine or cervical (6.4%)
  4. Malignant melanoma (6.2%)

Scottish Widows announced an uplift in advance payments for critical illness from £2,000 to £3,000 from 1st May. While confirming an increase to advance payments made for critical illness claims.

The increased payment is aimed at helping those with cancer to meet costs associated with a diagnosis, as well as the rising cost of living and energy prices, Scottish Widows stated. The payment is offered as a lump sum at any stage of the claim

COVID

Scottish Widows also detailed that it paid out on 1,066 Covid-related claims in 2021 totalling £13m, representing a year-on-year increase in claims volumes of 64% compared to 2020.

Financial support

Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, commented: “When you bring together challenges posed by the rising cost of living together with the continued emotional and financial impact of the Covid-19 pandemic in its second year, we must recognise the difficulties that families in the UK have been faced with.

“And while we are very proud to have maintained a payout rate of over 98%, delivering on our promise to protect and support our customers during the toughest of moments, we note the drop in detection of critical illnesses for another year.

“Cancer remains the most common cause of both critical illness and life insurance claims and we must emphasise the importance of early diagnosis. The pandemic has undoubtedly impacted the backlog in the health service and some people may be feeling hesitant to see a doctor about their symptoms, but we would urge everyone to seek medical advice if they notice any changes in their health.”

Source: Cover Magazine May 2022

For full claims information please click HERE

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history and your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

Call me back

Jon’s moving story – being diagnosed with cancer

The protection industry pays out 6.2bn on 2020 claims

What questions will an adviser ask me?

Will my claim be paid?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

Take a look at our handy guide ‘What Cover is Right for me?’

Do you suffer from a medical condition and are concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

Links to third-party websites exist for information only, and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.