Royal London pays out over £751m in protection claims

• 98.7% of all protection claims were paid in 2024
• A record £751m paid out by Royal London
• 65,385 claims paid
• 5,408 customers signed up for Helping Hand in 2024, with 979 being supported by a dedicated nurse

Claims statistics published today show mutual insurer, Royal London, paid out over £751m in protection claims in 2024, helping 65,385 families and businesses cope financially with life shocks when they needed it most. The proportion paid represents 98.7% of all claims made.

This is the first set of numbers that partially include policies following the formal transfer of Aegon’s individual protection business on 1 July 2024.

In 2024, Royal London paid:

• Nearly £270m in term life and terminal illness claims, with an average payout of nearly £93,000 for life claims and £132,000 for terminal illness claims.
• Over £180 million of critical illness claims, helping 2,675 customers and their families, with an average payment of over £67,000. This represented 89.7% of all critical illness claims paid. The most common conditions clients claimed for were cancer (64%), heart attack (10%) and stroke (9%).
• Over £8m in income protection claims, helping to improve the financial resilience of 1,259 customers who were unable to work. This represented 86.8% of income protection claims.
• Over £286m in whole of life claims, representing 99.98 % of these claims. The average payout was £5,000.

Protection plans offer more than just a financial pay out

In addition to the financial safety net provided by a protection policy, Royal London’s Helping Hand offers comprehensive health and wellbeing services at any stage of the policy's duration. In 2024, over 5,000 customers registered for Helping Hand, allowing them to access additional assistance such as virtual GP consultations, musculoskeletal therapies, physiotherapy, and mental health support.

It was a lifeline for around one thousand customers and their families last year who received support with a cancer diagnosis (19%), mental health wellbeing (17%), musculoskeletal issues (17%) and bereavement support (13%).

Recent extensions to Helping Hand include preventative services such as mental health support through Thrive and musculoskeletal advice through Track Active Me.

The value of protection at any age

Life shocks can disrupt lives and financial security at any age, making early long-term planning crucial. The youngest customer Royal London paid a claim for was 19 years old, and a quarter of claims were for those under the age of 45.

Royal London’s claims paid record highlights the importance of protection insurance as part of financial planning, as Craig Paterson, Chief Underwriter at Royal London, explains:

"Publishing our claims statistics shows how crucial it is to have a financial safety net for when the unexpected happens. Paying a claim is our moment of truth – and in 2024 we delivered on that promise, with a record-breaking year for claims paid to customers.

"While we have always had a strong track record in paying claims, we’re always looking to improve the claims experience for our customers, making it easier for them to claim and pay claims faster. For instance, we’re now able to settle more life insurance claims without requiring medical evidence."

Critical illness claims are dominated by cancer, heart attack and stroke. Cancer affects 1 in 2 people in the UK, and it accounts for two thirds of all claims. Royal London has a strong track record in supporting health and financial resilience and has committed to donating a further 1.2m this year to Cancer Research UK. This will help reduce the risks by tackling cancer inequalities through funding research into hard-to-treat cancers, initiatives to improve the pathway to early diagnosis, as well as supporting programmes that increase cancer awareness in communities.