Shepherds Friendly, the UK-based mutual, announced it paid 96.2% of income protection claims in 2022, up from the 95% paid in 2021.
The mutual’s five year paid claims average is 95.3%. The main reasons for claims were musculoskeletal (non-spinal) at 28.29%, spinal at 11.70%, mental health at 10.65%, coronavirus at 9.24%, and fractures at 7.09%.
Claims were declined for either non-disclosure, the claims not meeting the terms and conditions, the claim being made for symptoms excluded under the plan, or misrepresentation.
Shepherds Friendly also released details on their added health and well-being support services, known as Enhanced Benefits.
Around 16.2% of income protection members used the Nuffield Health Virtual GP service throughout 2022 up to the end of February 2023.
Additionally, Shepherds Friendly paid out £26,000 in death benefit (Bereavement Payment) and £2,500 in new child payments (£250 payment into a Junior ISA for income protection members who open a Shepherds Friendly Junior ISA).
David Palk, head of claims at Shepherds Friendly, emphasised the mutual’s focus on supporting its income protection members when they need it the most, saying: “Income protection is arguably the most important financial product a person can have and our focus on paying claims has meant valuable financial support at a very difficult time. These claims statistics prove the product paid out as promised when needed.”
Stuart Boseley, financial adviser at Best Insurance, praised Shepherds Friendly for releasing their claim stats early in the year, saying: “It backs up their ethos and commitment to customer service, it also allows our consultants to provide a thorough and unbiased presentation of facts, which is so important and refreshing for customers in their buying process.”
