Life insurers paid out £90m during Covid-19 crisis

Equivalent of £980,000 a day

Adam Saville
clock • 2 min read

ABI stats have shown insurers paid £90m in claims to help families cope with Covid-19 deaths.

During the height of the crisis, insurers received nearly 7,000 life insurance claims and paid £90m - the equivalent of £980,000 a day - to support families of people who passed away due to coronavirus, stats from the Association of British Insurers (ABI) have revealed.

The figures show that between 1 March and 31 May this year, 6,689 claims were received under individual protection policies, with 351 claims under group schemes (also including a small number of critical illness and total permanent disability claims). On average, 77 claims were paid each day.

The vast majority of these claims (83%) have been paid so far and every life insurance claim has been accepted. The average pay-out on term insurance is expected to be £63,000, with an average pay out of £137,000 on group policies.

Roshani Hill, ABI's assistant director, head of protection and health, said:  "Every Covid-19 death is a tragedy. While no amount of money can ever replace a life, insurers have been doing all that they can to help families cope financially through these unprecedented and distressing times.

"We know that coronavirus has long lasting impacts, and protection insurers will continue to support families hit by this tragedy. No one knows what is round the corner, which is why protecting yourself and your family against the worst is vitally important."

Covid-19 Support Fund

The insurance and long-term savings industry also has launched a Covid-19 support fund to provide relief to charities and community initiatives affected by the coronavirus pandemic.

The Covid-19 support fund aims to raise £100m, with £82.5m already having been pledged.

The fund will comprise voluntary contributions from firms across the sector, with the likes of Aviva, Zurich and AIG donating so far. It is in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust.

It will aim to support community-based charities that are under unprecedented strain; charities supporting the most vulnerable - in particular, families and children living in greatest poverty and older people in isolation - and initiatives to promote wellbeing and mental health across society 

The fund is supported by members of the ABI (Association of British Insurers), The British Insurance Brokers' Association (BIBA), Lloyd's, and The London Market Group (LMG).

More on Protection

Record protection payouts must spur advisers on

Record protection payouts must spur advisers on

These aren't products that sell themselves

Ahmed Bawa
clock 01 November 2024 • 5 min read
Could a broader advice definition boost protection's reach?

Could a broader advice definition boost protection's reach?

'No one wakes up in the morning thinking about buying life insurance'

Paul Yates
clock 22 October 2024 • 4 min read
Are we talking enough about protection and succession planning?

Are we talking enough about protection and succession planning?

Why are more IHT liabilities for gifts not being protected?

Naomi Greatorex
clock 30 September 2024 • 4 min read

In-depth

Analysis: Advice M&A continues apace as FCA review looms

Analysis: Advice M&A continues apace as FCA review looms

Firms taking very different approaches to buying and selling

Isabel Baxter
clock 18 November 2024 • 7 min read
Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Budget comes as prime minister says country 'embrace the harsh light of fiscal reality'

Jen Frost
clock 29 October 2024 • 22 min read
In view: Plotting PFS change

In view: Plotting PFS change

From first operating loss since 2008 to sponsorship, board and revenue changes

Jen Frost
clock 17 October 2024 • 6 min read