Aviva paid over £413m in group protection claims during 2023, with cancer being the biggest cause of payout, across group life, group income protection and group critical illness.
This is a significant increase on the £373.9m paid out the year before. Overall Aviva says that group protection payments were made to 8,077 employees and their dependents during this 2023. .
LIfe insurance claims accounted for the largest proportion of these payouts. In total Aviva paid out 2,144 group life claims, totalling more than £255.7m. The average amount paid out was £117,663.
There were 5,361 new and existing group income protection claims, costing the insurer £116m over the year. This equates to an average amount of £21,820 paid in the year per claim.
Aviva also paid out £41m to 572 group critical illness claim in 2023 — with the average payout being £71,746.
Across the board Aviva says it paid out more than £1m a day to employee and their families via these group protection claims. Over the past three years it says it has paid out more than £1.15bn in group protection claims.
These figures are published as part of its 2024 Group Protection Claims and Wellbeing Insight Report. This provides a in-depth look at the breakdown of claims across each product line. Key finding for each are included below along with Aviva figures showing increased used and effectiveness of their rehabilitation services.
Group Income Protection
Cancer remained the most common reason for making a claim accounting for nearly a quarter (24 per cent) of new claims.
Meanwhile mental health conditions made up almost a fifth (19 per cent) of new claims, followed by orthopedic (16 per cent) and neurological conditions (12 per cent)).
For 2023 new claims, the average age of an insured member was 48 years old. The youngest was 19 years old and the oldest was aged 69 years.
Aviva says it has continued to invest in rehabilitation, with the number of employees receiving this support increasing by 11 per cent when compared to 2022.
A total of 2,782 employees received rehab support across 286 UK employers in 2023, while over 900 employees with more complex conditions were referred to Aviva’s rehabilitation partner network for private treatment and specialist support.
Over four fifths (83 per cent) of employees who received rehabilitation support either remained in or made a successful return to work.
Aviva said that half of the cases requiring early intervention support were for mental health, up slightly from 47 per cent) in 2022. Almost nine in 10(87 per cent) employees completing mental health rehabilitation in 2023 successfully returned to – or remained at work and, of these, 96 per cent) returned to work within the scheme deferred period, meaning that their employer didn’t need to make a claim on their GIP policy. This was up from 93 per cent) in 2022.
Musculoskeletal conditions made up (15 per cent) of total referrals for rehabilitation support in 2023. Over nine in 10 (95 per cent) employees returned to work and 96 per cent) of these returned to work within the deferred period, up by 4 per cent compared to 2022.
Aviva said that just under one in 10 (9 per cent) of its new rehabilitation cases were to support people living with cancer and 70 per cent) of cancer survivors supported returned to work or remained at work.
Aviva said that while this was a still a concern for employers, the proportion of cases relating to long Covid decreased in 2023, making up just 5 per cent of referrals.
Group Critical Illness
Almost two-thirds (64 per cent) of GCI claims were paid for those aged between 40-59, with the average age being 48 and the youngest being children who were diagnosed with a covered condition at birth.
In total seven in 10 (70 per cent) claims relating to cancer — by far the most common reason for claim. This was followed by heart attack (7 per cent), stroke (6 per cent), multiple sclerosis and benign brain tumour (both 3 per cent).
Group Life Insurance
Cancer made up over a third of group life claims (38 per cent), followed by heart disease (16 per cent), stroke (3 per cent), suicide (3 per cent), and respiratory conditions (3 per cent). Over half (54 per cent) of claims were made for insured members aged between 40-59 years.
For new claims made in 2023, the youngest insured member was 16 years old and the oldest aged 74 years (lump sum). The average age of insured members was 54 years.
Aviva group protection sales director Jason Ellis says: “The insight clearly demonstrates how we’re supporting employees and their loved ones through difficult times, not only financially, but also through specialist wellbeing services and rehabilitation expertise.
“Through our group income protection, we remain focused on helping employees stay at work, or return to work as soon as possible. Last year four in five employees referred for rehabilitation support had this positive outcome.”
He adds: “For group life our focus continues to be on making it as quick and easy as possible to access financial support. On average, it took just over three days to settle our group life claims, helping to make life slightly easier at a challenging time.
“Our 2023 report clearly shows the continued need for group protection and the value it offers to employers and their workforce. As growth continues to be strong in the market, it’s reassuring that more employers are recognising the benefits of looking after the physical, mental, and financial wellbeing of their workforce, both to manage business risk and to retain and attract talent.”
