UK insurers paid a record £8 billion in protection claims in 2024, according to the ABI and Grid.
Critical illness claims totalled £1.3 billion, up 5 per cent on 2023. The average payout rose to £67,600, with cancer remaining the leading cause of claims, accounting for 62 per cent and £812 million of the total paid.
Income protection claims also saw strong growth, with payouts reaching £204 million, a 16 per cent increase on the previous year. The average claim rose by 6 per cent to £10,000. Musculoskeletal conditions, including back and neck pain, were the most common reason for claims, making up 34 per cent and totalling more than £32 million.
Of the £8 billion paid, £5.32 billion came from individual protection claims, a 10 per cent increase despite volumes remaining flat at 275,000. The average payout rose 10 per cent to £18,700.
The claims paid rate stayed high at 97.9 per cent, with most rejections due to customers not disclosing existing health conditions or not meeting policy definitions.
ABI assistant director and head of health and protection Rebecca Ward says: “Behind every protection insurance claim is a person or someone close to them having to navigate a significant illness, injury or loss. The financial support these products can provide is a lifeline for those who need it, when they need it most. With nearly £22 million paid in claims every day in 2024, protection insurers remain committed to helping people recover when faced with serious illness or grief.”