May 27, 2022

How many protection claims did Aviva payout in 2021?

Aviva announced total payouts of £1,1 billion across individual critical illness, life insurance and income protection policies last year.

The insurer paid out 98.1% of all claims settled throughout 2021. These totalled 53,713.

Life claims

  • 43,954 life insurance claims were paid
  • Total payouts for life insurance (including terminal illness) were recorded at £732m
  • 1,992 death claims were made relating to Covid-19 with payouts totalling £68.5m.
  • 99.4% of all life insurance claims were settled during 2021.
  • The average life payout was £16,646.
  • Cancer was the most common reason for a life claim 36.6%.
  • Followed by cardiovascular claims (19.5%) then Covid-19 (11.8%), and respiratory (7.9%).
  • Suicide was the second-most common reason for a life insurance claim in the 30-39 age bracket.
  • 0.6% of life insurance claims were not paid out., Aviva stated that this was due to misrepresentation (0.3%), definitions not being met (0.3%) or other reasons (0.2%).

Critical illness claims

  • 92.4% of all critical illness claims were paid during 2021.
  • 4,367 payouts for critical illness.
  • The average payout was £70,917.
  • Total payouts of £310 m
  • Claims were highest among the 50-59 years age bracket (42.9%).
  • Divided by men (46.9%) and women (43%)
  • Cancer was again the leading cause of critical illness claims received in 2021 (59.2%)
  • Followed by heart attack (10.6%), stoke (7.2%), children’s benefit (4.4%), multiple sclerosis (3.7%) and total permanent disability (2.6%).
  • Cancer was attributed to 71% of all critical illness claims made by women last year, compared to 47.7& of those from men.
  • Breast cancer and prostate cancer were the most common claims made among women and men respectively (57.9% and 23.6%).
  • For critical illness claims not paid out on, Aviva attributed these to misrepresentation (1.8%), definitions not being met (5.5%) or other reasons (0.4%).

Income protection claims

  • Aviva paid out 85.4% of all income protection claims received throughout last year
  • The average age of claimants recorded at 44 years old.
  • Claims were highest among men and women in the 40-59 age bracket, with 96.7% for men and 61% for women.
  • Total payouts of £51 m
  • Musculoskeletal issues were the leading cause of income protection claims (37%)
  • Followed by mental health (21.3%), cancer (11%), Covid-19 (5.9%) and heart condition or stroke (2.2%).
  • Misrepresentation and terms not being met were the primary reason for 14.6% of income protection claims not being paid out, Aviva stated.

Financial support

Jacqueline Kerwood, claims philosophy manager at Aviva, commented: “2021 was a year when society had to manage the continuing impacts of Covid-19 whilst trying to get back to normal life, all against a backdrop of continued pressure on the NHS, rising rates of mental health issues and emerging increases in the cost of living.

“We saw some of these impacts in our protection claims experience, with mental health claims continuing to be prominent on income protection alongside a rise in claims for Long Covid. Life insurance claims due to Covid-19 also continued, although thankfully these did reduce considerably over the year as the vaccine rolled out.

“Fewer critical illness claims were presented to us than before the pandemic due to delays in diagnosis and treatment of serious conditions, but we did see claims numbers increase on the previous year.”

Source: Cover Magazine 2022

For full claims figures click HERE

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