Cirencester Friendly paid 95.4% of new claims in 2022 with more than £8.5m paid out in total.
The income protection (IP) provider revealed it paid 1,348 claims across its portfolio in 2022, with most claimants (59%) aged between 31 and 50 and almost a quarter (23%) aged 30 or under.
Its 95.4% of new claims approved in 2022 was up slightly on 2021 when 93.6% of claims were paid totalling £8m.
The top reasons for claims in 2022 were accidents (26%), musculoskeletal conditions (26%) and infections (16%). The vast majority (95%) of claims were made for a deferred period of four weeks or less.
Paul Reed, director and 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, said: “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.”
Andy Morris, CEO of Cirencester Friendly, (pictured) added: “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.”