According to the latest estimates from the Association of British Insurers (ABI) its members expect to pay up to £2.5 billion for Covid-19 insurance claims incurred in 2020.

Previously we reported that Lloyd’s had estimated a £500 million cost of UK Covid-19 claims, taking the current overall estimate up to £3 billion for all UK coronavirus related insurance claims.

The latest estimates include £204 million paid from Covid-19 related protection insurance claims, including life, critical illness, and income protection insurance claims, providing invaluable support for those heartbreakingly impacted and for families who have tragically lost loved ones due to the coronavirus.

The data was collected from individual firms by the ABI in mid-late January 2021 with millions of pounds continuing to be paid out every week in claims settlements. At this time, over two-thirds of a billion pounds (£697 million) had been paid out for all claims made.

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.”

Without doubt, Covid-19 has had a huge impact on demand for our services, from customers concerned about cover for the virus under their existing life insurance policy, to new customers wanting to take out cover, to an unfortunate but inevitable increase in life insurance claims from bereaved families.

Since the outbreak began, we have been working closely with all the major UK life insurance providers to ensure that as many families as possible benefit from having protection insurance in place and providing support for our customers when they need it most – whether that be signposting to support services offered or helping with the claims process.

The prospect of death is a tough conversation for anyone to have with a stranger – but we think a necessary one and since the coronavirus crisis, tragically, many families have had to deal with the reality of sickness, loss of income and death which has projected the need to the forefront of their minds.

Currently the protection message has never been more relevant or more urgent and our advisors have been crucial in offering their service to our customers and providing much needed peace of mind.

If you have any questions about your existing protection policy and the financial, emotional, and practical support that it can offer throughout its life, or if you are considering taking out life insurance for the first time, please do not hesitate to contact us on 0800 612 8005 - we're all in this together and we will continue to be here for you during this extraordinary time.