New analysis debunks the myth that “insurers don’t pay out” as vast majority of protection claims paid in 2021

New analysis by financial protection experts I’m Insured has revealed that the UK’s leading insurers paid out the overwhelming majority of personal protection claims in 2021.

The research goes a long way to debunking the common myth that “insurers don’t pay out”, with seven of the most popular providers paying out more than £3 billion to hundreds of thousands of families and businesses.

I’m Insured analysed the claims data of seven of the country’s biggest insurers and can reveal that more than 9 in 10 of all personal protection claims were paid in 2021. When it comes to life insurance the figures were even higher, with Aviva, for example, paying an incredible 99.4% of all life insurance claims.

Commenting on the analysis, Jim Stamp from I’m Insured says: “One of the common misconceptions people have is that insurers will do whatever they can to get out of paying claims. However, our analysis shows this simply isn’t the case.

“Looking at the data from seven of the UK’s leading insurers shows that around 49 in every 50 life insurance claims are paid, 9 in 10 Critical Illness claims, and around the same number of income protection claims.”

The I’m Insured analysis also looked into the reasons why insurers didn’t pay a small number of claims, and found there were three main reasons:

Jim Stamp from life insurance and Critical Illness cover experts I’m Insured adds: “These seven insurers paid out more than £3 billion in 2021, providing a valuable sum when individuals and their families needed it most.

“Whether it was a life insurance payout for an individual who had passed away due to Covid-19, or a significant payout when a child was diagnosed with a critical illness, protection has supported hundreds of thousands of families during the most difficult times.

“What this analysis has proved is that people can rely on their protection and can be reassured that insurers will treat claims fairly and sympathetically.”

I’m Insured is an independent insurance brokerage that helps to find customers the best quotes online and to reduce the cost of their monthly insurance premiums.

They can compare life insurance, Critical Illness cover and income protection from the UK's most reputable providers.

The service is fast, free and secure and customers have rated then 4.9 out of 5 on Feefo, the independent review service.

For more information, contact Jim Stamp. Email jim@im-insured.co.uk or call 02921 280 155/07894 317 763.