11 June 2019

More than half a billion paid out in claims by Royal London

4 min read

Meera Khanna, Consumer PR Manager
Meera Khanna

Corporate PR Manager - Protection


Royal London paid 99% of claims in 2018 with more than £506m paid out in UK protection claims, helping more than 38,000 customers and their families at a difficult time.

Life Insurance

Nearly £174m was paid in life and terminal illness claims. 95.2% of term life insurance claims were paid, with an average of nearly £103,000 per claim. Terminal illness claims had an average payout of more than £156,000 with 89.4% of claims being paid.

Whole of Life

More than £132m was paid in whole of life claims with 99.9% of the claims being paid. The average payout was more than £3,800.

Critical Illness

£190m was paid in critical illness (CI) claims with an average payout of nearly £99,000. 91.2% of CI claims were paid out, with 2.9% declined due to misrepresentation and 5.9%% of claims not meeting the plan definition. The most common reasons for a CI claim were cancer (64%), heart attack (11%), stroke (8%), multiple sclerosis (4%) and children’s CI (4%). Cancer accounted for more than half of the children’s CI claims (56%). The average age of a CI claimant (excluding children) was 50 years old and the average age of a children’s CI claimant was just seven years old*.

Income protection

Royal London paid £930,544 for income protection (IP) claims, with 72.2% of claims being paid in 2018, and the average payout being more than £5,900. £29,000 was also paid out on Fracture Cover claims. Of the claims that were declined, 13.9% were due to misrepresentation and 13.9% did not meet the plan definition. The most common reasons for IP claims were musculoskeletal (34%), cancer (20%) and mental health (13%), with the average age of an IP claimant being 43 years old*.

Craig Paterson, Underwriting & Claims Philosophy Manager at Royal London, said:

“While 99% of our claims were paid last year, we remain focused on continually improving our claims experience. We have sped up the claims process and reduced the need for paper forms, which has meant that for many claims we are able to take digital consent from customers to get the medical evidence we need.

“Cancer continues to be the most common reason for a claim for both adults and, sadly, children too. With cancer being the single biggest critical illness risk we all face, it’s important to have comprehensive CI which is why we enhanced our product and introduced four additional cover conditions for early forms of cancer.

“As well as receiving a financial payout, we recognise that customers are going through a difficult time in their life, which is why our Helping Hand service is an added benefit that supported more than 1,200 customers and their families last year.”

Notes to Editors

1.      £506m - Royal London UK Protection business claims paid (1 January to 31 December 2018)

2.     * Royal London UK Intermediary Protection business claims paid (1 January to 31 December 2018)

3.     Royal London’s claims statistics for advisers guide can be found here

4.     Income Protection (IP) claims - ABI Method of reporting claims

  • ABI members have changed the way IP claims are reported;
  • This is the third year we have included this method;
  • Using the new method, only new claims paid or declined in 2017 are reported;
    • Claims in payment before 2017 that continued to be paid in 2018 are no longer included.

5.     All Royal London protection plans bought through a financial adviser come with Helping Hand which is a service that provides additional support that might be needed beyond a financial payout. More information on the service and the benefits can be found here https://www.royallondon.com/helping-hand/

About Royal London:

Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.

For further information please contact:

Meera Khanna, Corporate PR Manager - Protection