UK estimates £204 million will be paid from Covid-19 causes for related life risk protection policies

In a recent press release, the Association of British Insurers members said that its members expect to pay up to £2.5 billion for COVID-19 insurance claims incurred in 2020, according to the latest estimates.

The latest estimates include £204 million paid from Covid-19 related protection insurance claims, including life, critical illness, and income protection insurance claims.

Huw Evans, the ABI’s Director General, said:

“The Covid-19 pandemic is unprecedented in its impact and will be one of the biggest insured events of recent times. These latest estimates demonstrate the range of support ABI members expect to offer their customers as a result of Covid-19 related claims across a wide range of insurance policies. This data was collected from individual firms by the ABI in mid-late January, and millions of pounds continue to be paid out every week in claims settlements.

“The industry response also includes vital support to families who have lost a loved one to Covid who are receiving life insurance payments.

“However, we recognise the pandemic has also illustrated some uncomfortable gaps between what people expected to be covered for and what their policy was designed for. We need to learn lessons from this unprecedented event and redouble our efforts to improve consumers’ trust in insurance products.”

Source : https://www.abi.org.uk/news/news-articles/2021/02/covid-19-estimated-claims/