Cirencester Friendly paid 95.8% of new income protection (IP) claims made in 2024, equalling the figure approved in 2023.
The total number of claims considered increased by 15%, with 1,414 IP claims considered and 1,354 claims paid. The total amount paid to members also increased to more than £10m.
A total of 60 claims were declined during the year. More than half were declined because the claimant had continuing income, with the rest being turned down due to non-disclosure, no proof of income, another insurance policy coming into effect or unemployment.
Back, neck and shoulder pain increasing
The most common reason for claims in 2024 were musculoskeletal conditions and those related to the back, neck, and shoulders as well as arthritis.
This was up significantly from 2023, overtaking accidents as the biggest single cause for claims for both male and female members.
Even in Gen Z, those aged 17 to 26, almost a third of claims (31.9%) were related to these conditions.
Musculoskeletal conditions and arthritis accounted for around a third of claims for both men and women.
However, just over 10% of claims for women related to mental health illnesses, such as depression.
This was more than twice the rate than for men, where only 4.7% of claims were due to mental health conditions.
This was similar to last year’s figures, indicating potentially that men are still struggling to seek support.
Importance of protecting income
Michelle West-Wiggins, director of customer experience at Cirencester Friendly, (pictured) said: “Our latest claims figures reflect our core objective to be there when members need help the most.
“The fact that there is almost 50 years difference between our oldest and youngest claimants shows protecting your income is important, no matter what age you are or what job you do.
“Anyone can have an accident or suffer ill health.
“Almost half of claims were from millennials, who are most likely to have young families to support.
“They are likely to have high fixed outgoings and being unable to work for one or two months can have a severe impact on their finances, not just while they are ill or incapacitated but for years to come.
“Providing essential cover to pay the bills, avoiding the need to rack up significant debts, can make a huge difference to their future and protecting their livelihoods.”