British Friendly paid 86% of new income protection (IP) claims last year and more than £5m to its members in income protection, discretionary BF care and fracture cover claims in 2024.
That represents a percentage fall from 89% in 2023, but a higher payout than in 2023 when less than £5m was paid out.
British Friendly also said today it had paid 94% of all claims over the last 20 years.
The main reasons for declined claims in 2024 were misrepresentation including fraud at 49% and definition of incapacity not being met at 21%, while pre-existing conditions for the Simplified product under the moratorium period accounted for 10%.
A total of 92.5% of claims have been paid with misrepresentation declines excluded in 2024.
Overall, 1,023 new claims were accepted last year, with claimants ranging from 20 to 69 years old and an average age of 43.
Three-quarters of claimants (74%) were men and 26% women.
The five most common reasons for claims in 2024 were:
- Musculoskeletal – 54%
- Surgery – 10.5%
- Chest/lung/nose/throat – 8.5%
- Mental illness – 5.6%
- Cancer – 5%
The most common jobs of claimants include HGV drivers, builders, carpenters, nurses, and factory workers.
Added benefits
British Friendly’s Fracture Cover, which was launched in 2023, paid out £19,000 on eight fracture cover claims in 2024.
More than £113,000 was paid through its discretionary BF Care programme, providing financial support to members.
BF Care includes death, bereavement, terminal illness and recovery support benefit as a lump sum, as well as care assistance benefit which provides a weekly payment.
Service levels
In terms of service levels, the average time to pay claims in 2024 was nine working days, excluding any delays caused by third parties or member.
On average all calls were answered within 90 seconds.
Maxine Jannetta, head of claims at British Friendly, (pictured) said: “Last year, we introduced the option of a tele-claims service to our members, removing the need for a traditional claim form.
“Members who opt for this service receive immediate support from a designated claims manager to guide them through the claims process.
“Since launching this service, we’ve seen decisions being made in less than two weeks, providing our members with peace of mind and allowing them to focus on their recovery.”
