AIG Life paid out a record £394mn in protection claims to 6,900 customers in 2023.
The UK life insurance firm, which is now part of Aviva Group, provided support to more than 5,200 individuals, families and businesses in 2023 by paying 95 per cent of all individual claims.
AIG Life also revealed that it paid £206mn in personal protection claims, an increase from the £204mn it had paid in 2022 and an 11 per cent increase on the number of claims paid in the previous year.
AIG Life chief operating officer, Neil Davies, said: “Every single claim paid is a family or business we’ve helped during one of life’s toughest times.
“The feedback we receive from customers and their beneficiaries when they go through a bereavement or illness tells us that the claims we pay make a real difference.
“The industry really does care about being there for people when they need us most.”
Davies added that it’s important the industry delivers at times like these and that it does all it can to help customers “see the humanity of what we do”, and the value protection offers.
The firm additionally detailed that it paid 99 per cent of individual life insurance claims, 95 per cent of terminal illness claims, 95 per cent of critical illness claims, and 88 per cent of income protection claims.
Types of protection
AIG also gave insight into the payouts of different kinds of protection, reporting more than £164mn was paid out in over 4,400 individual life insurance and terminal illness benefit claims last year.
It added that, of these claimants, 32 per cent who died had cancer, 17 per cent had heart disease, and 13 per cent had a respiratory condition.
Meanwhile, almost all (96 per cent) terminal illness claims were for individuals with cancer, the youngest claimant was just 22 years old.
The firm also paid £38mn in critical illness claims to 617 individuals and families who had experienced a serious illness.
A further 73 payments were also made to families whose child had suffered a children’s critical illness, or to families whose young child had sadly passed away.
Additionally, AIG Life gave insight into its income protection payouts, revealing it had paid over £2mn in 2023 to 110 customers who were too ill to work.
A third of people who received a monthly income protection payout had musculoskeletal challenges, and almost a fifth (19 per cent) were suffering with their mental health.
Cancer was third, amounting to 9 per cent of claims.
tom.dunstan@ft.com
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