Scottish Widows, the Insurance and pension behemoth pays more than £2 million in claims every week and has paid £728 million in life insurance and £426 million in critical illness claims in the last 11 years, since the year 2000.
According to data released by the company, the insurer has settled 30,800 life and critical illness claims in a little over a decade, worth £1.154 billion. On an average, the firm pays £1.3 million in life and £744,000 in CI claims every week.
“Since 2000 we have helped more than 30,000 families who have made either life or CI claims”, said Clive Ellison, Protection Market Director.
“The industry has come a long way in the past few years to raise awareness of the importance of having adequate protection in place. Also confidence has increased among consumers that life companies will pay out when making a claim”, he added.
Mr. Ellison attributed the greater claims settlement ratio to better transparency saying: “This is down to a number of factors, including the Association of British Insurers’ code of conduct on non-disclosure which was introduced in 2008, and a greater emphasis on simplifying the process when making a claim”.
Indicating that there is sufficient room to grow their business, Mr. Ellison added: “however, the UK population is still hugely under-insured so Scottish Widows continues to work extremely hard to highlight to its customers the importance of financially protecting themselves with products such as life and CI”.
Mel Kenny, a chartered financial planner said that the numbers released by SW emphasizes the importance of life and CI protection. “As an industry we get hung up on the percentages whereas the consumer looks at the pounds and pence. While I do not think that Scottish Widows is that renowned for protection, these huge pay-out figures do bring it home how important life and CI cover has been to people’s lives”, he said.