Press release

Protection claim payouts soar to £98 million at LV=

New figures reveal that protection specialist LV= paid record individual protection claims totalling £97.9 million during 2018 – up £10 million up from 2017. Through the course of the year, LV= supported over 7,400 new and existing claimants and their families, as they dealt with life-changing events.

Payouts to new and existing income protection (IP) claimants totalled over £14 million, with musculoskeletal problems (33%), cancer (23%) and mental health (20%) the most common conditions for new claims. During the year LV= paid out nearly £5 million to support new and existing claimants with mental health issues.

2018 also saw LV= expand its tele-claims service to all new IP claimants to help improve their experience of making a claim. Specially trained claims professionals are on hand to speak to customers, talk through their individual situations, advise on any extra supporting evidence that may be needed and start the process of organising any appropriate early intervention support. 

Through its new partnership with Innovate – a leading early intervention specialist – LV= offered individual rehabilitation, emotional and back-to-work support to over 100 IP claimants in the second half of 2018. 

Some of the features recently added to the LV= protection products have already started to make a difference to policyholders. For example fracture cover, which was added to IP policies in 2017, saw a number of claims in 2018 – the lump sum benefit payout helps avoid short-term income shocks resulting from injuries and is paid with no need to make a full IP claim. 

Overall, LV= settled 94% of all individual protection claims across its life, critical illness, terminal illness, income protection and unemployment policies. 

Chris McNab, Protection Proposition Director at LV= said: “Last year, LV= paid out more than ever for individual protection claims. These numbers prove that protection and features such as fracture cover can play a vital role in helping people when they need it the most.

“We believe that modern insurance should be about more than just the cover provided and money paid out. Our partnership with Innovate allows us to provide meaningful, practical and emotional support for claimants and their dependants – providing tailored rehabilitation, helping people back to work and sometimes even helping them to launch a completely new career.

“Our tele-claims service has transformed our claimants’ experience for the better. Customers can speak directly to our trained claims team, helping us to understand and respond to their situation immediately, at what often can be an emotional and vulnerable time. For income protection claimants, this allows us to quickly decide on the best types of support and get them on to the road to recovery more quickly.” 
 

Notes to editors:

Figures relate to all underwritten protection claims and non-underwritten protection claims (over 50s plans) paid in 2018. 

New claims - LV= major protection products - 2018

Type of product Total value paid  Average claim paid  Average age of claimant 
Non-underwritten (over 50’s whole of life)
£14,306,208
£3,602
59
Critical Illness
£24,817,630
£78,334
49
Income Protection
£2,224,492
£1,221 a month
46
Personal Sick Pay
£2,330,690
£872 a month
37
Term Life Insurance
£30,719,728
£60,472
62
Terminal Illness
£8,138,992
£99,256
57
Underwritten whole of life
£1,916,332
£28,181
75

For more information please contact:

David Gwyer
Media Relations Manager – Life and Pensions
020 7634 4311
07798 796907
Candice South
Press Officer, Life & Pensions
0207 6344 497
07867 141 547

About LV=

LV= is a leading financial mutual and serves over 5.8 million customers with a range of financial products. When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. We offer our services direct to consumers, as well as through IFAs and brokers.

Liverpool Victoria Friendly Society Limited (LVFS) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered number 110035. Registered address: County Gates, Bournemouth BH1 2NF