Scottish Widows paid out on 98% of protection claims over past year

More than 98% of protection claims were paid out by Scottish Widows over the past 12 months.

Broken down, 99.5% of life claims and 94.2% of critical illness claims were paid out last year, representing 9,227 and 1,485 claims respectively.

More than £206m was paid out in total in 2020 at an average of just under £4m per week, which is around the same level as 2019 when the insurer paid out on 99.4% of life claims and 93% of critical illness claims.

During the pandemic, Scottish Widows paid 650 COVID-19 related claims totaling just over £7m to help individuals and their families.

There was a reduction in critical illness claims received last year, with 1,576 claims received in 2020 versus 1,800 in 2019, representing a 12% decrease.

Scott Cadger, head of protection underwriting and claims strategy at Scottish Widows, said: “In a year that has been financially and emotionally challenging for many, we are proud to have maintained a claims payout rate of over 98%. This means that as an insurer, we have continued to support families during some of their most difficult moments.

“Our data has also shown that we have seen a decline in critical illness claims received for cancers, stroke and tumours, but the percentage of critical illness claims paid out was in line with 2019.

“It’s understandable that people may be hesitant about seeing the doctor in the current climate, but they should still seek medical advice if they notice any changes in their health. Getting help early could make all the difference when it comes to diagnosing and treating conditions.”