Guardian has revealed it paid over £21.3 million in life, terminal illness and critical illness claims in 2024, marking a 40% increase on the previous year.

The figures, released in the company’s annual claims report, reflect the performance of products that have now been in market for at least five years.

The report details a total of 238 successful claims last year, with 100% of life and children’s critical illness claims paid. Guardian also reported a 92% payout rate for adult critical illness and 94% for terminal illness. The average claim amounts ranged from £35,679 for children’s cover to £153,625 for terminal illness.

In his commentary on the report, Guardian’s chief executive Carlton Hood (pictured) said he was “extremely proud” to see how many families the insurer had supported during the year. He pointed to Guardian’s willingness to challenge industry norms as a key driver behind its improving customer outcomes.

Among the report’s highlights was the performance of Guardian’s enhanced terminal illness definition, which provides cover for a set of advanced diagnoses regardless of life expectancy. In 2024, more than half of Guardian’s terminal illness claims would not have met the typical industry threshold, yet were paid out under this enhanced definition.

Guardian also reported growth in critical illness claims, where the value of payouts rose by 24% year-on-year. Notably, 81% of those claims were linked to cancer, heart attack, stroke and multiple sclerosis. The insurer attributed some of the speed and clarity in decision-making to its use of clear definitions based on UK consultant diagnoses, including one case that was paid on the same day.

CHILDREN’S CLAIMS

Children’s critical illness claims also saw full payout, with more than half made under adult life-only policies. Guardian said this confirmed the success of its flexible cover design, which allows child protection to be added independently of adult critical illness cover. A further 7% of children’s claims came from policies attached solely to adult income protection – a product introduced in 2023.

Guardian’s HALO support service, which connects claimants with RedArc nurses, legal charity Legacare and neurological therapy specialists Krysalis, also featured prominently in the report. The company said real-life examples of its work would be included to illustrate the value of personalised claims support.

The insurer also paid out 99% of its premium waiver claims, with 283 policyholders benefiting from an average of £47.68 in waived monthly premiums.

The report includes details of the 13 claims that were declined, with the reasons given intended to help advisers and the wider industry address the root causes of unsuccessful claims. Jenny Binns, Guardian’s claims specialist manager, said: “When policyholders or their families claim, they’re often sad, stressed, overwhelmed and vulnerable. They need our help.”