LV insurance payouts hit record level

LV has reported a record level of insurance payouts with more than 8,000 made in 2022.

The insurance and protection mutual saw its total payouts hit £127mn in the year, with the largest share of payments made for life insurance claims. In total, LV paid out more than £80mn in life insurance, including terminal illness claims, to over 5,000 families. 

The most common cause for claims was cancer, accounting for 40 per cent of payments. 
This was followed by heart-related conditions at 20 per cent, respiratory at 9 per cent, Covid-19 at 6 per cent and strokes at 5 per cent. The average age at claim was 63 and the youngest was 25, while the highest claim payment was £1mn. 

LV’s head of underwriting Anna Rogers said that the mutual’s support for its customers does “not start and end with a claim payment”.

“For example, the LV doctors services provides valuable support throughout the life of the policy and members also benefit from our mutuality with support via our legal advice line and member support fund,” she said. 

Critical illness claims accounted for the second highest share of LV’s payouts, with the group paying out more than £28mn to more than 360 individuals and families.

The largest critical illness claim paid came to £400,000. Again, cancer accounted for the largest share of critical illness claims at 56 per cent. This was followed by heart attacks at 14 per cent and stroke at 7 per cent. 

Breast cancer was the most common form of cancer a claim was made for at 24 per cent, followed by prostate at 14 per cent, bowel at 13 per cent and skin at 10 per cent.

Separately, LV paid out £544,000 in 25 critical illness claims involving children from newborn to 17 years old.

Income protection

Income protection claims for the year totalled almost £15mn, with more than 1,000 policy claims paid out. The most common claim in this group was for musculoskeletal related issues at 25 per cent, while cancer related claims trailed close behind at 20 per cent. 

Earlier this week, the Association of Financial Mutuals released an analysis that showed musculoskeletal related claims had increased in 2022 to become the most common form of income protection claim.

It drew a link between the rise in remote working and the increase of these claims, noting that back and neck related claims rose across the board.

Elsewhere for LV, income protection claims relating to fractures accounted for 15 per cent of payouts, while coughs and cold accounted for 5 per cent. 

Mental health related income protection claims accounted for 4 per cent of payouts.

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