Royal London pays record £821m in protection claims

Royal London paid a record £821m in protection claims during 2025, supporting more than 62,000 customers and reinforcing the value of protection advice at a time when financial resilience remains under pressure.

The mutual insurer paid 98.4% of all protection claims last year, helping 62,412 customers, families and businesses through illness, bereavement and loss of income.

The figures represent the highest claims payout in Royal London’s history and reflect continued growth in its protection business, including the first full year following the transfer of Aegon’s individual protection portfolio.

BIG INCREASES

Term life and terminal illness claims saw significant increases, rising by 32% and 17% respectively.

Royal London paid £326m in life and terminal illness claims, with average payouts of £85,437 and £133,238 respectively. The insurer also paid £198m in critical illness claims to 2,959 customers, with cancer accounting for almost two-thirds (64%) of all claims.

Income protection continued to play an important role, with Royal London paying £9.6m to 1,536 customers who were unable to work due to illness or injury.

Usage of Royal London’s Helping Hand service increased throughout 2025, with GP appointments rising by 21% and more than 1,000 customers accessing specialist RedArc nurse support.

CLEAR, FAIR AND COMPASSIONATE

Craig Paterson (main picture, inset), chief underwriter at Royal London, said: “We support customers at some of the most difficult moments in their lives, and that’s about far more than simply paying a claim, it’s about being clear, fair and compassionate every step of the way.

“Our claims figures underline why protection matters. When the unexpected happens, having cover in place can make a real difference, and features like Free Cover help make sure customers are protected from day one, giving them confidence we’ll be there when it matters most.”

The insurer said the youngest claimant supported during 2025 was aged 19, while the oldest was 102, demonstrating the broad role protection products play across every stage of life.