"This year, we have seen a concerning rise in the prevalence of cancer, with a substantial rise in the number of claims paid for cancer-related causes."
- Scott Cadger, head of claims & underwriting strategy at Scottish Widows
Scottish Widows paid 98% of claims in 2024, including 99.1% of Life Insurance and 91.8% of Critical Illness (CI) claims. Overall, the provider paid £236.6mn to 11.5k policyholders and their loved ones - £141.4mn (9,939) for life and £95.1mn (1,609) in CI claims.
Almost £14.6mn was paid in terminal illness claims, representing a 27% increase since 2023. Over a third (33.7%) of life claims were a result of a cancer diagnosis.
Concerningly, Scottish Widows recorded a 4% rise (to 40.7%) in cancer-related deaths amongst women – compared to 29% of men. Meanwhile, men were twice as likely to die from heart-related issues than women (27% vs 13%).
The average age of customers with life claims was 58 – the youngest person whose life policy paid out was 21 years old. For terminal illness claims, the average age was 56. Scottish Widows documented a 32% increase in life claims from those aged 31-40.
Worryingly, almost two-thirds (64%) of all CI claims were prompted by a cancer diagnosis, rising to 75% of claims made by women compared to 53% by men. Scottish Widows also recorded heart attack (10.4%) and stroke (8.6%) as common causes to claim.
The most common CI cancer-related claims amongst men were for prostate (26%), bowel (12.8%), malignant melanoma (7.5%), Hodgkins/lymphoma (7%), and leukaemia (5.4%). For women, breast cancer represented over half (51%) of cancer-related claims, followed by bowel (9.1%), malignant melanoma (6.3%), ovarian (4.5%), and uterine or cervical (4.3%).
The average age of customers with CI claims was 52 – the youngest person whose CI policy paid out was 25 years old. Furthermore, the youngest children’s cover claim was for a 15-day-old; children’s cover is included as standard for Scottish Widows policyholders.
In terms of added-value services, policyholders (and their immediate family) have access to support from RedArc, with or without making a claim. In 2024, 28% received support for cancer, and 13% for mental health. Around 7% of referrals received were for children needing mental health and bereavement support – 12% of referrals were for family members.
Policyholders also have access to Clinic in a Pocket, which offers online 24/7 digital private GP appointments, provided by Square Health. In 2024, Scottish Widows recorded a 57% increase in usage compared to 2023, predominantly for skin-related concerns, including moles and other skin lumps (15%), cold, flu, and other minor infection symptoms (13%), and children’s health (12%).
“We continue to support our customers and their loved ones by providing the financial safety net they trusted us with when they chose a Scottish Widows policy.
“This year, we have seen a concerning rise in the prevalence of cancer, with a substantial rise in the number of claims paid for cancer-related causes. That’s why we will continue to work with our partners, Macmillan, RedArc, and Square Health, to offer industry-leading support, so customers can focus on what matters during life’s unexpected twists and turns,” said Scott Cadger, head of claims & underwriting strategy at Scottish Widows.
