Record Pounds900M Paid to Aviva’s Protection Customers in 2017

LONDON, England, April 17 -- Aviva, a provider of insurance, savings and investment products, issued the following news release:

More than Pounds900 million was paid out last year to customers with Aviva individual protection policies, an increase of Pounds30 million from 2016, with just 2.8percent of all claims received being declined.

The UK's largest insurer paid more than Pounds525 million to the families of life insurance customers who had died or to customers diagnosed with a terminal illness last year. Pounds337 million was paid out to customers diagnosed with critical illness, and more than Pounds38 million of benefits were paid to customers with income protection cover or fracture claim benefits.

The statistics reveal that more than 25,000 customers and their families benefited from life, critical illness and income protection insurance policies during 2017, an increase from 23,000 in 2016. This includes more than 16,000 customers claiming for life and terminal illness, more than 4,000 claiming for a critical illness and more than 4,000 income protection and fracture cover claims.

Many of these customers were also supported by additional services such as Aviva's rehabilitation case management for income protection customers, Second Opinion by Best Doctors (R) and a counselling and carer support telephone service by Workplace Options.

During the year, 98.9percent of life insurance claims and 93.2percent of critical illness claims were paid, up from 92.3percent in 2016. For income protection, 88.8percent of claims were paid based on the new ABI methodology of stating new claims received in the year that were accepted, an increase from 84percent of claims paid in 2016 based on the same methodology.

Of the small number of critical illness claims which were not paid, 1.2percent were declined due to non-disclosure and 5.2percent for conditions not being met. The most common reasons for an income protection claim being declined was due to the definition of disability not being met, followed by misrepresentation of important medical information either before the policy was taken out or following an accepted claim.

Click here to view the graph: (https://www.aviva.com/newsroom/news-releases/2018/04/Aviva-record-900-million-pay-out-to-protection-customers/)

Key statistics for 2017 include:

* The average sum paid to critical illness customers was Pounds79,162.

* Cancer remains the most common cause of critical illness claims at 62percent of all claims, followed by heart attack (9percent), stroke (6percent), children's critical illness (5percent) and multiple sclerosis (4percent).

* Mental health conditions accounted for the majority of income protection claims at 28percent, followed by musculoskeletal (15percent) and cancer (9percent).

* The average age at which customers claim is 42 years on income protection and 47 for critical illness.

"Our claims data shows the sheer scale of the vital financial support that we provide to customers and their families, helping them at some of the most difficult times of their lives. Last year saw our biggest ever payout of Pounds900 million, making a real difference to the financial wellbeing of more than 25,000 customers and their families.

"We know that consumers are doubtful and worry that insurers don't pay claims but these figures and the wider protection industry's claims data show that this is simply not true. At Aviva we are committed to paying as many claims as we can, shown through the increase in our claims paid rates and our overall rate of 97.2percent of all claims paid. We are equally committed to providing our customers with an exceptional, quick claims service and additional support services to help them when it matters most."

Robert Morrison, Aviva Global Chief Underwriter, Health and Protection.