Aegon UK paid out over £139 million in protection claims in 2021, accounting for 94% of all claims assessed, with types of claims ‘significantly influenced’ by pandemic.
The total number of overall claims rose by 7% last year compared to 2020 levels, largely driven by a rise in life claims.
Aegon assessed 21% more life claims in 2021, with cancer remaining the most common cause of death for life claims (34%), followed by respiratory-related claims (20%) and cardiovascular-related claims (19%).
While cancer and cardiovascular claims have remained consistent over the last two years, claims of respiratory-related deaths have increased threefold compared to 2019, the protection specialist said.
The biggest increase in overall life claims received in 2021 was between January and April, with a further spike in June and July. Pre-pandemic, the summer normally marks a fall in life claims.
Meanwhile, Aegon paid 93% of critical illness claims last year, with overall claims down 12% compared to pre-pandemic levels. Aegon said the decrease in claims was likely to be driven by increased pressure on the NHS during the pandemic, which saw many routine cancer screenings suspended.
Helen Morris, head of underwriting and claims at Aegon, said: “Despite a challenging period, we’re pleased to have continued to pay a high proportion of claims over the last year. The coronavirus pandemic remained a significant influence on the protection market in 2021 and we saw an increase in the number of life protection claims we received as a direct result of this, with respiratory-related life protection claims almost tripling since 2019.
“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.”
