HSBC Life (UK) Limited (“HSBC Life (UK)”) provided significant financial support to its policyholders in 2024, paying out a total of £93 million in life insurance and critical illness claims. The company demonstrated a high rate of claim settlements, with 97.53% of life insurance claims and 94.44% of critical illness claims being approved.
The speed at which claims were processed was notably efficient. Life insurance claims were settled in an average of 19 days, significantly faster than the industry average. A remarkable 67% of claimants received a decision on their claim within a single day. Critical illness claims, while taking longer, were still resolved within an average of 41 days.
Analysis of the 2024 data reveals that cancer accounted for a substantial portion of claims. For life insurance, cancer represented 40% of all claims, followed by heart disease at 12% and respiratory conditions at 11%. Cancer was by far the largest cause of critical illness claims at 65%. Heart attacks accounted for 12% and strokes for 6% of critical illness payouts.
A significant £15.5 million was paid out in critical illness claims related to cancer. Furthermore, 50% of all cancer claims for women were specifically related to breast cancer. Reflecting its commitment to prompt service, HSBC Life (UK) even approved and paid a critical illness claim on the very same day it was filed for one customer.
HSBC Life (UK) is encouraging financial advisers to be well-informed about the various support services available and the nuances of different critical illness policies. The company stresses the importance of understanding both the additional value-added services and the variations in standard cover definitions offered by different providers, to ensure advisers can best support their clients.
With over 3 million individuals currently living with cancer in the UK, a figure projected to rise to 3.5 million by 2025, 4 million by 2030, and 5.3 million by 2040, the importance of comprehensive insurance coverage is increasingly clear.
Jen Carhart, Head of HSBC Life (UK)’s award-winning Claims team, emphasized the company’s dedication: “HSBC Life (UK) takes pride in supporting our policyholders and showing them the real value of protection. We are extremely passionate about supporting our most vulnerable customers during times of need. We are proud to be a member of the Protection Distributors Group (PDG) charter and we are laser focused on providing the highest possible standards of customer service during the claims process.”
