Aviva proclaims £81m payment to UK medical health insurance customers through COVID-19 Pledge – InsuranceNewsNet

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Aviva has announced that it’s delivering on its COVID-19 Pledge by paying £81m to eligible UK private medical health insurance customers.

The figure represents Aviva’s current estimate of the difference between expected claims costs and actual claims costs for the period of claims monitored, from 1 March 2020 to 31 December 2022, when some treatments and procedures were delayed slightly than cancelled.

For individual customers the payment might be roughly six weeks’ value of their annual premium and for SME customers the payment might be around seven weeks’ value of their annual premium1. For giant corporate clients, payments will vary across schemes depending on each scheme’s claims experience.

Last October, Aviva announced an extension to the timeframe of the COVID-19 Pledge until the top of 2022, stating an expectation that it could take longer for claims for deferred treatment that otherwise would have been made through the pandemic period to arise.

Ongoing evaluation by Aviva now shows that the claims catch-up has been slower than expected and combined with the present pressures on UK household funds, Aviva has concluded that a payment earlier in 2022 delivers the most effective final result for patrons.

Payments won’t be subject to the potential increase that was outlined within the October update because the payments are actually being made inside the original Pledge timeframe, slightly than being delayed until 2023.

As stated within the Pledge, customers and clients who paid a premium across the period 1 March 2020 to 31 March 2021 might be eligible for a payment, even in the event that they not hold a policy.

Grant Thornton UK LLP have independently reviewed Aviva’s approach in keeping with the COVID-19 Pledge commitment.

Aviva might be contacting brokers and their clients over the approaching weeks to allow them to know concerning the payments.

Aviva will proceed to observe claims until the top of the yr and if any further payment is made in 2023, it will include a 20% increase.

-ENDS-

Further information

1. The payment estimates provided are based on policies remaining energetic and paid up throughout the eligible period. If a policy ended through the eligible period, proportionate payments might be made.

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Disclaimer

Aviva plc published this content on 22 June 2022 and is solely answerable for the data contained therein. Distributed by Public, unedited and unaltered, on 22 June 2022 12:23:30 UTC.

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