Members of the Association of Financial Mutuals (AFM) that offer income protection products paid out £52m in claims over the year, to more than 9,000 customers.
The figure was up from £34m in 2021, with the body attributing much of the increase to LV= joining.
On a like-for-like basis, the amount paid out in 2022 was around 3% higher, while the number of claims fell 2%, the AFM added.
This year the AFM collected data from British Friendly, Cirencester Friendly, DG Mutual, Exeter Friendly, Holloway Friendly, LV=, PG Mutual, Shepherds Friendly, Transport Friendly and Wiltshire Friendly.
The most common reason to claim was musculoskeletal which accounted for a third of all claims, while the number of claims relating to mental health fell slightly, from 9% in 2021 to 8% in 2022.
The proportion of claims approved was just under 92%, down slightly on the previous year of 94%. Health & Protection has asked the AFM if this figure is for only new claims made in 2022 or if it includes claims already in payment.
The main reasons for claims to be declined were those where key information was not disclosed at the point of application or claim (41%), and the claim had been made for an excluded condition or was outside the scope of the policy (39%).
Andrew Whyte, chief executive of the AFM, (pictured) added: “AFM members sold 50,000 new income protection policies in 2022.
“This, and increasing amounts paid out emphasise the growing importance people attach to ensuring their income is secured if they can’t work due to injury or illness.
“While inflation and the cost of living remain high, having the capacity to pay the bills and look after the family finances has never been more important. Mutual income protection providers are at the forefront of paying claims and committed to providing the best possible service to their members.”
