‘ Insurers never pay out ’ is one of those myths that is so widely stated that many people simply believe it to be true. However, evidence shows it is simply not the case.
According to figures from the Association of British Insurers (ABI)1 £6.2bn was paid out to grieving and struggling families in 2020 – the equivalent of £17m every single day. This included £202m paid out to help the families of those impacted by the pandemic.
Mental health protection
Income protection claims for mental health conditions also rose from 10% to 12% in 2020, perhaps a reflection of the increased stress, anxiety and depression reported by many during lockdown. The ABI has also recently launched a mental health training platform to teach insurers how to better engage with customers who disclose mental health problems.
An essential financial safety net
Paul Brencher, Managing Director of Individual Protection at Aviva UK, commented: “The financial risks from ill health are not new, but the pandemic has dramatically highlighted how the financial resilience of families can be so easily tested. There has never been a more important time to demonstrate the benefits of protection, the safety nets it can provide to customers and their families in difficult times, and its relevance for employers and financial advisers.”