"When people are going through a life-changing event, the relief of knowing that their finances are taken care of can make a difference."
- Anna Rogers, Head of Underwriting & Claims at LV=
Overall, LV= paid 94% of all individual protection claims, equating to £135mn – this is a 6% increase since 2022.
More than £87mn was paid out in Life Insurance (including terminal illness) claims, supporting 5.5k families and their loved ones. 36% of claims were triggered by a cancer diagnosis, followed by heart-related conditions (23%), respiratory (9%), and stroke/brain haemorrhage (5%). The average age at claim was 65, but the youngest was 28 years old.
LV= paid more than £27mn in Critical Illness (CI) claims, with the highest payout costing more than £600k. Cancer accounted for 59% of all CI claims – breast cancer (25%), bowel (13%), and prostate (12%). This was followed by heart attack (10%), and stroke (5%). Notably, LV= paid over £605k for 25 children’s claims, with the youngest claimant aged one day old.
More than £17.2mn was paid in Income Protection (IP) claims, supporting over 1.1k families and their loved ones. Musculoskeletal (33%), cancer (23%), and mental health (15%) accounted for over half of all IP claims, with an average claim length of five years & 10 months for full IP policies. Notably, LV= paid almost £89k in Parent & Child cover claims, with an average age of 7 years old.
Personal Sick Pay is designed for those in higher-risk occupations or self-employed. Almost £4mn was paid in Personal Sick pay claims, supporting more than 1.1k individuals and their loved ones. 45% of claims were triggered by musculoskeletal issues, followed by fractures (10%), coughs & colds (6%), and mental health (5%).
“The value of protection is worth so much more than an insurance payout. The LV= Doctors Services provide valuable support and members also benefit from our Legal Advice Line and Member Support Fund,” said Anna Rogers, Head of Underwriting & Claims at LV.
Highlighting that LV= was unable to pay 6% of claims, Anna said “providers and advisers must work together to educate customers on the importance of accurate disclosures in their applications.” She believes this would help break down some of the preconceptions about insurance.
