What ABI’s £8 Billion Pay-out Means for Everyday Policyholders
- 02/08/2025
- Posted by: Appeal Avenue
- Category: Articles
Claiming on insurance is one of those things we hope we never have to do, but when life throws a curveball, it can make all the difference. According to the Association of British Insurers (ABI), last year saw a record-breaking £8 billion paid out across protection claims, including life insurance, critical illness cover, and income protection.
It’s good news, and it shows the system works for the vast majority. But when a claim isn’t paid, it can leave policyholders feeling overwhelmed. That’s where Appeal Avenue steps in, we offer friendly, jargon-free support when things get complicated.
ABI Data at a Glance: What 2024 shows us
£5.32 billion was paid out in individual life insurance, critical illness and income protection alone — a 10% increase from 2023. (The full £8 billion includes group and other protection claims.)
– Critical illness claims hit £1.3 billion, with cancer making up 62% of those — that’s over £812 million paid out for cancer alone
– Income protection payouts rose to £204 million, up 16% — with musculoskeletal issues (think back and neck pain) behind more than a third of those claims
– Life insurance payouts totalled over £4 billion, with an average claim of £79,703
– Total Permanent Disability (TPD) claims were comparatively lower — just 406 claims paid, with a 62.5% acceptance rate and £33 million in total paid out. The average payout was the highest of all product types at £82,052
These numbers reflect how insurers are delivering on their promises. But even with high acceptance rates, some claims are turned down, and not always due to fraud or error.
Why Claims Sometimes Get Rejected
There are occasions when a claim isn’t paid, often due to reasons like:
– Unclear policy wording that’s easy to misinterpret
– Missing information or details that were inadvertently left out at the application stage
– Varying definitions across providers around what’s considered an eligible claim
It’s not always a case of someone doing something wrong — sometimes it’s about navigating complex terms and processes. Take Total Permanent Disability (TPD), for instance. These claims tend to involve serious, long-term health issues, and although the average payout is high (over £82,000), the acceptance rate is the lowest of all protection types at just 62.5%. One possible reason is the complexity of the criteria and how much definitions can vary across insurers.
Some providers may only assess eligibility after a defined waiting period (such as 12 months off work), or require permanent inability to do any suited work, making it harder for claimants to meet the threshold. It’s easy to feel unsure about what qualifies — especially when you’re already dealing with health concerns.
What We Do at Appeal Avenue
At Appeal Avenue, we’re here not just to help with appeals, but also to support you through the claiming process itself. Whether you’re preparing a new TPD claim or challenging a decision, we can guide you through the policy wording and help clarify what’s needed. If you’d like us to act on your behalf, we can also look to pull together the right medical evidence to give your case the best chance of success.
How Appeal Avenue Bridges the Gap
We set up Appeal Avenue to help make sense of it all. If your claim’s been rejected and you’re not sure why, or you feel the decision doesn’t reflect your situation — we’re here to help.
– We take the time to explain your policy in plain English
– We gather the right information to build your case
– We liaise directly with the provider or regulatory body to get things moving
Figures based on ABI Protection Insurance Claims Statistics 2024 (published 2025).
Source: Association of British Insurers – 2024 Claims Data