Vitality has released its life claims data for 2022, demonstrating that it honoured 96.6% of all protection claims, amounting to £96 million. This encompassed a total of 2,440 claims spanning life and terminal illness, serious illness, and income protection products.
In the previous year, Vitality approved 99.7% of life claims, translating to £60 million. Cancer remained the primary cause of life claims, followed by heart and artery-related issues and respiratory ailments. Notably, the impact of COVID-19 shifted from being the fourth leading cause of claims in 2021 to the seventh in 2022.
For serious illness cover, 92.5% of claims were fulfilled in 2022, totalling £35.5 million. Cancer stood out as the leading cause for both genders, significantly affecting women with nearly 70% of claims. While the top three claims were for cancer, heart attacks, and strokes, 32% were attributed to other conditions such as gastrointestinal and respiratory illnesses.
The cover also extends to a broader range of conditions impacting a member’s lifestyle, not limited to critical issues. Surprisingly, Vitality claimed that one in eight of its honoured claims wouldn’t have been covered by a competitor’s typical enhanced critical illness plan in 2022. Last year, one in 12 serious illness claims were from claimants who had previously received a payout on their plan.
In 2022, musculoskeletal claims were predominant on income protection plans, constituting 34% of claims, closely followed by cancer (29%) and mental health (14%). These three categories accounted for over 75% of all claims.
The report also underscores the significant influence of engaging with the Vitality Program. Active members who regularly claim their rewards through the program experienced a notable decrease in mortality risk, with mortality rates dropping by up to 41% based on their level of activity.
With prevention as a core principle, Vitality also incentivizes members for enhancing their health, offering discounts, rewards, and reduced premiums on their insurance plan. In 2022, members saved £42 million through lower premiums for engaging with their health via Vitality’s Optimiser. Moreover, £60 million was given back to members through rewards, resulting in an average saving of 28% on their annual premium.
In 2022, Vitality noted that its members benefited from:
“Our shared value insurance products have always had positive customer outcomes at their foundation, and we welcome the introduction of Consumer Duty,” VitalityLife managing director Justin Taurog said. “As well as ensuring our members get value and a framework to get healthier from day one, we’re also dedicated to ensuring we’re there when they need us most. The fact we paid out over £96 million across life, serious illness cover, and income protection cover in 2022 demonstrates this.”
Elsewhere in the L&H segment, the profitability of the UK’s life sector is poised to be negatively impacted because of newly implemented consumer rules, according to commentary by Fitch Ratings
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