Aegon UK pays out £139 million for individual protection claims in 2021
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Wondering what claims Aegon UK paid out over the last year? Hemma Visavadia's piece from Cover Magazine has all the details you need.
Aegon UK has paid out over £139 million in individual protection claims in 2021, up 7% from 2020, driven by an increase in life claims.
Aegon reported 21% more individual life claims in 2021 compared with 2020, with Covid-19 accounting for 20% of all life claims last year - up from 14% in 2020 and 7% in 2019.
For life claims in 2021, cancer remained the most common cause of death, accounting for 34% of claims, followed by respiratory-related claims (20%) and cardiovascular-related claims (19%).
The provider noted that cancer and cardiovascular life claims remained largely similar in the last two years of the pandemic, while claims for respiratory-related deaths reportedly tripled from 2019.
The provider said that the biggest increase in life claims during 2021, was between January and April, with a further spike in June and July. From August through to December, there was a steady increase in life claims, with Aegon remarking that it showed early signs of a"return to usual seasonal mortality trends."
For critical illness (CI), claims were overall down 3% in 2021 compared to 2020, with cancer, heart attacks and strokes accounting for 82% of CI claims. The provider paid out on 93% of all individual CI claims received throughout the year.
Cancer was the top reason for claiming on CI (61%) in 2021, followed by heart attacks (13%) and strokes (8%).
The provider explained that the drop in CI claims could be due to the increased pressure on the NHS, which was spurred on by the pandemic. During the period, routine NHS services were suspended, such as breast, cervical and bowel cancer screenings, which restarted in late 2020 and 2021.
Aegon also confirmed it paid out on 90% of all individual income protection claims received during 2021, but did not provide any further claims statistics related to the product.
Helen Morris, head of underwriting and claims at Aegon, commented:"The general trend across the critical illness market is that overall CI claims remain down on pre-pandemic levels, with the reduction in medical screening and routine services playing a role in this."
"We may begin to see a return to more typical seasonal trends as these medical services return to a more normal level," she said.