UK insurers received almost 7,000 life insurance claims, and paid £90 million – the equivalent of £980,000 every day – to support the families of people who died due to COVID-19 at the peak of the crisis, according to data issued by the ABI.
The figures collected by the ABI show that between 1 March and 31 May this year 6,689 claims were received under individual protection policies, with 351 claims under group schemes and a total of £90 million paid.
These figures equate to 77 claims worth £980,000 every day during the period during the period in which the data was collected.
Roughly 83% of these claims have been paid so far, with ABI figures showing that every life insurance claim so far has been accepted.
The average payout on term insurance is expected to be £63,000, with an average payout of £137,000 on group policies
“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,” said Roshani Hill, ABI’s Assistant Director, Head of Protection and Health.
“We know that Coronavirus has long-lasting impacts, and protection 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.”
The UK insurance and long-term savings industry is also supporting many charities through the COVID-19 Support Fund.
Launched in May this year, the Fund has already seen £83.9 million having been pledged in voluntary contributions from firms across the sector.
The COVID-19 Support Fund works in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust and Business In the Community.
The key 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.
