Cirencester Friendly, the individual income protection provider, paid out over 95% of claims in 2022, according to its latest figures.
This marks a slight increase from the previous year, when 93.6% of claims were paid, and continues a record of paying on average more than 94% of claims over the past decade.
The company paid out more than £8.5m, covering payments relating to income protection, as well as the rest of the Cirencester Friendly portfolio, which provided valuable cover to members and their families.
Of the 1,348 claims across its portfolio, most claimants (59%) were aged between 31 and 50, with almost a quarter (23%) aged 30 or under.
The top reasons for claims were accidents (26%), musculoskeletal conditions (26%), and infections (16%). The figures show that accidents can happen to anyone and highlight the value of protection for anyone of working age.
The figures from Cirencester Friendly are significantly higher than most consumers assume pay out rates for insurers to be. In the recent AMI Viewpoint survey, on average respondents thought only 60% of income protection claims were paid.
By publishing its results and being transparent about its claims data, Cirencester Friendly hopes to challenge this misconception and urges other insurers to follow suit
Paul Reed, director & protection specialist at Vita, said: “There are many barriers that prevent people from taking out protection insurance and one of the objections we often hear is that their claims won’t be paid.
“These impressive figures from Cirencester Friendly disprove this. Working with an insurer with such a high rate of paying claims installs confidence in our customers and reassures them that taking out protection will provide the level of security they are looking for.”
David Mead, joint head of protection at St. James Place, added: “What stands out to me is that almost 23% of Cirencester Friendly’s claimants are aged 30 or under.
“There is a tendency for people to think protection is just for older people, but these show that it can be a vital safety net for people of any age.
“The pandemic highlighted that everyone is vulnerable to illness and these results will help us demonstrate the real value of protection to working people of all ages.”
CEO Andy Morris said: “I’m delighted that yet again Cirencester Friendly has paid out such a high percentage of claims.
“One of the most effective ways to increase the appeal of income protection is to reassure people that their claim is highly likely to be successful.
“As an industry, we need to work harder to get this message out, building a greater level of trust with consumers.
“As a mutual society, Cirencester Friendly puts the needs of members at the very heart of our organisation.
“These claims statistics demonstrate how strongly we adhere to this commitment and the real value our policies bring to members.
“In 2023, we will continue to work hard in these challenging times to provide this important protection to more people, ensuring they have a financial safety net when they need.”
