The Exeter paid £9.9m in income protection (IP) claims in 2022 while its longest running claim has been paid for more than a quarter of a century.
Overall the UK protection and health insurer said it paid out on 92% of new claims received from its members, with the most common reason for claims cited as musculoskeletal conditions (40%), followed by Covid-19 (16%), and hip or knee conditions (7%).
The Exeter approved 1,229 claims in 2022 having made 1,336 final decisions, both slightly higher than the previous year.
Where the insurer could not pay out, the most common reason was due to misrepresentation where questions were not answered correctly at the point of application, leading to a different underwriting outcome being made.
The data also showed that the average age of claimants was just 36 years old on its Income First product, compared to 48 years old on its legacy products.
The average claim duration for a full-term policy was 96 weeks, compared to 83 weeks for limited benefit policies, while the Exeter’s longest running claim in payment has been paid for more than 25 years, with over £500,000 paid out during that time.
Claire Hird, customer service director at The Exeter, (pictured) said: “While it’s important to share our income protection claim statistics with the market, it’s just as important to remember that behind every claim there’s a member; someone who has looked to us to provide support and reassurance during a difficult time.
“In 2022, we assessed over 1,300 claims from our members, each of whom is an example of how illness or injury can impact our ability to earn a living.
“With the average income protection claim for both limited and full-term benefit policies lasting almost 90 weeks, and our longest claim being paid for over 25 years, our statistics show the vital role that income protection insurance plays in giving our members peace of mind and financial security.”
Vikki Jefferies, proposition director at Primis, added: “The figures announced by The Exeter today highlight the necessity of protection insurance for people of all ages and demographics, and particularly for homeowners who would otherwise be left unable to make mortgage payments.“