Aegon UK pays £148.1 million in protection claims in 2019

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Aegon UK has today published individual protection claims data which shows it paid a total of £148 million for more than 1,500 claims, providing valuable support to families and businesses.

Aegon has also published a ten year history of claims paid for each of the protection products.

Life protection claims

The latest figures from Aegon UK reveal that 96% of all life claims were paid in 2019 to 711 families and businesses, representing payments amounting to £71.5 million.

The average size of claim paid was £100,619 and the average age at claim was 63 years old. Cancer continued to be the most common cause of death for a life claim (43%), followed by heart-related conditions (23%).

Of the life claims declined in 2019, 3.5% were due to misrepresentation which is a 75% increase from last year, while those declined due to not meeting the definition remained steady at 0.5%.

Terminal illness claims

Life policies also include the sometimes overlooked terminal illness benefit, which means the policy will pay out on diagnosis of an illness, where life expectancy is 12 months or less. These claims are assessed separately from life protection claims.

Twenty three percent of life claims were paid early under Aegon’s terminal illness definition and Aegon paid 93% of all terminal illness claims it received. In total, £33.4 million was paid for terminal illness claims in 2019, helping more than 210 families and businesses put their finances in order before the insured person’s death.

Critical illness claims

Aegon paid 94% of critical illness claims, which represented payments of £41.9 million.

The average size of claim paid was £83,964 and the average age at claim was 50 years old.

The ‘big three’ critical illnesses – cancer, heart attack and stroke – accounted for 83% of critical illness claims. Cancer alone accounted for 60% of critical illness claims in 2019, followed by heart attacks (15%) and strokes (8%).

Of the critical illness claims declined in 2019, 4.3% were due to the definition not being met and the remaining 1.7% were due to misrepresentation.

Income protection

Aegon’s income protection claims experience reveals that last year, Aegon UK paid 100% of new claims received, and £232,000 in regular monthly benefits. Accident was the most common reason for IP claims (38%) in 2019, closely followed by mental health (31%).

Key claims paid figures

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See full 10 year history of claims here.

Simon Jacobs, Head of Underwriting and Claims Strategy at Aegon UK said:

“Aegon continues to help people manage their finances in the face of the unexpected through the payment of protection claims. Having published claims stats on an annual basis since 2001 we recognise the value of this information.

“It’s important to both advisers and their clients, and the stats go some way to build trust in not only Aegon but also in the protection industry, which has for so long battled the consumer belief that providers don’t pay claims. Our statistics tell a different story and we continue to pay every valid claim we receive.

“Declining claims is the biggest decision our claims assessors ever make, and isn’t something they do lightly. We’re disappointed to have seen such an increase in misrepresentation for life claims compared to last year – particularly around alcohol usage and heart problems. We’re committed to working with intermediaries to help them get the best terms for their clients, based on the most accurate information. Supplying false information will only lead to disappointment for their client’s family – at a time when they could really benefit from financial support.

“It’s never a pleasant experience to deliver the news of a declined claim – and in many cases it could have so easily been avoided.

“But a claim is only as good as the application and underwriting of the policy. When information supplied is misleading or inaccurate, that’s when claims can be challenging and the worst case scenario is that they are declined.

“Protection policies are most effective when applicants are open and honest on their applications.

“This is when clients really need the expertise of their adviser to guide them through the application process to ensure they get the best terms, based on the most accurate information and can be confident in the valuable cover they have purchased.”

Further information

Stephanie Melrose

PR Manager

Aegon UK

stephanie.melrose@aegon.co.uk

Tel: 0131 549 6743

Mob: 07740897621

Notes to Editors

  • In the UK, Aegon offers retirement, workplace savings and protection solutions to over three million customers. Aegon employs around 2000 people in the UK and together with a further 800 people employed by Atos, we serve the needs of our customers. More information: aegon.co.uk
  • As an international life insurance, pensions and asset management group based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ approximately 26,000 people and have millions of customers across the globe. Further information: aegon.com

Figures correct as of November 2019