Aviva pays nearly half a billion pounds in protection claims in 2012

Article date: 29 April 2013

  • Life, CI and IP claims total £475 million in 2012
  • 93.5% of individual income protection claims paid
  • Payments rise by £22 million compared to 2011

Aviva protection customers and their families received more than £475 million through claims on life insurance, critical illness cover and individual income protection policies in 2012. This equates to more than £1.3 million pounds a day, or £902 per minute.

The figures include £324 million (up £4m from 2011) paid to the families of life insurance customers who have died or been diagnosed with a terminal illness, and over £131 million (up £17m from 2011) paid to customers with critical illness (CI) cover. Payments to income protection customers totalled almost £15 million (up 1.3 million from 2011).

The data also reveals that during 2012 Aviva made payments for 10,880 life insurance claims (up 385 from 2011), 1,716 CI claims (up 148 from 2011) and 1,130 individual IP claims (compared to 1,227 in 2011).

Over the year the insurer paid 99.3% of life insurance claims, 93.5% income protection claims and 92.5% of critical illness claims. Of claims which were declined, 0.7% of life insurance claims, 0.4% of individual IP claims and 1.7% of critical illness claims were declined due to non-disclosure.

Key statistics for 2012 include:

  • The average length of claim for an income protection policy was 113 months (nine years and five months).
  • The most common causes for IP claims were psychiatric conditions (30%); orthopaedic conditions (21%); neurological conditions (18%); rheumatological conditions (10%); and cancer (8%).
  • The average age for IP claimants was 52 years for women and 55 years for men.
  • The average sum paid to critical illness customers was £76,499 (up £2,908 from 2011).
  • The average age of critical illness customers was 44 years for women and 46 years for men
  • Cancer remains the most common cause of critical illness claims at 66%, followed by heart attack (12%), stroke (7%), multiple sclerosis (5%) and benign brain tumour (3%).
  • Over the last five years the same top five conditions have accounted for more than 92% of Aviva’s critical illness claims paid overall.

Robert Morrison, chief underwriter for Aviva says: “Our latest figures are great news for all families who have protection or are thinking of taking out cover. Protection policies are the types of products no-one ever wants to claim against, but the financial comfort they offer at a difficult time cannot be underestimated.

“Almost 14,000 of our customers and their families benefited from payments last year, so people can be reassured that we are absolutely committed to paying claims wherever possible. This is borne out by our latest claims statistics. We will continue to work with our customers to ensure if they need to make a claim, their journey is as quick and straightforward as possible.”

Additional information:

  • All customers with an Aviva critical illness policy benefit from up to £25,000 of children's critical illness cover for their children. In 2012 Aviva paid out 58 child critical illness claims.
  • During 2012 Aviva paid out £475,375,978 to people claiming through life insurance, income protection and critical illness cover. This includes: 
    • Child critical illness claims: £615,746 
    • Terminal illness claims: £50,416,796 
    • Total Permanent Disablement (TPD) claims: £4,973,971


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If you are a journalist and would like further information, please contact:
Sarah Poulter : Aviva Press Office : 01904 452828 : 07800 691569 : sarah.poulter@aviva.co.uk
                     
Notes to editors:

  • Income Protection claims statistics are calculated according to ABI methodology.
  • Critical illness claims percentages paid do not include TPD claims, child CI claims and terminal illness claims in line with previous Aviva reporting methods.

About Aviva:

Aviva provides insurance, savings and investment products to 34 million customers worldwide.
  
We are the UK’s largest insurer with over 14 million customers and one of Europe’s leading providers of life and general insurance. We combine strong life insurance, general insurance and asset management businesses under one powerful brand. We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
 
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