News
Royal London pays £731m in protection claims in 2023
Royal London shelled out £731m in protection claims last year, a £100m rise on the prior year, and represents 99% of all claims.
According to Royal London’s latest protection figures, the lender paid out 77,000 protection claims, with the highest individual payout being for £4m.
The firm said that more than £228m was paid in life insurance and terminal illness claims in 2023 across 2,396 claims. The average claim amount was £95,371.
For whole-of-life claims, Royal London paid £315m, with 99.9% of claims compensated. The firm said this was across 70,000 claims, with the average being £4,461 per claim.
On the critical illness side, the lender shelled out £173m, with 90.5% of claims paid in 2023. The average was £68,000 per claim.
The most common reasons for critical illness were cancer at 66%, and heart attack and stroke at 9% apiece.
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Royal London said that 6.8% of critical illness claims were declined due to not meeting the policy definition.
Within income protection, £6.5m was paid out in claims. The most common reasons were musculoskeletal at 54%, cancer at 10% and mental health conditions at 4%.
Royal London said that over 4,300 customers had registered for Helping Hand in 2023, allowing them access to virtual GP consultations, and musculoskeletal, physio and mental health support.
Craig Paterson, chief underwriter at Royal London, said: “Last year’s figures, a record total of £731m supporting over 77,000 families and businesses, [are] an endorsement of why we’re in the protection business – to pay claims and to be there for customers during life shocks.
“Our claims paid record not only provides reassurance to clients that valuable financial support is there when it’s needed most, it also demonstrates the importance of having a safety net in place as part of an individual’s overall financial planning.
“However, as well as providing a financial lifeline, emotional support can often be needed too, and Helping Hand is there to support clients deal with a shock diagnosis, recover from illness or come to terms with bereavement.”
In its financial results in March, the firm said that it paid £725m in protection claims to around 76,000 customers in 2023.