By Anoop Khanna
UK insurers paid the equivalent of £980,000 a day in death claims when coronavirus was at its peak, according to the Association of British Insurers (ABI).
Insurers received 7,000 life insurance claims and paid out a total of GBP90m to support the families of those who tragically died due to COVID-19 during the height of the crisis.
The latest ABI data for the period between 1 March and 31 May this year reveals that 6,689 claims were received under individual protection policies, with 351 claims under group schemes (also including a small number of critical illness and total permanent disability claims), with a total of £90m paid.
Around 83% of these claims have been paid so far. Across life insurance claims, these figures show that every life insurance claim has so far been accepted.
The average payout on term insurance is expected to be £63,000, with an average payout of £137,000 on group policies.
ABI assistant director and head of protection and health Roshani Hill said, “Every COVID-19 death is a tragedy. While no amount of money can ever replace a life, insurers have been doing all that they can to help families cope financially through these unprecedented and distressing times.
She said, “We know that Coronavirus has long-lasting impact and insurers will continue to support families hit by this tragedy. No one knows what is round the corner, which is why protecting yourself and your family against the worst is vitally important.”
Life insurers have been hit by the pandemic but their losses are seen as manageable. According to ABI data, the UK insurance and long-term savings industry is also supporting many charities that are helping some of the people hardest hit by the crisis.
Launched in May this year, the COVID-19 Support Fund has already seen £83.9m being pledged by insurers across the sector.
The main aim is to provide immediate relief to charities affected by COVID-19, as well as a longer-term programme of support for people, communities, and issues where there is the greatest need.
Asia Insurance Review