The Exeter has seen a 14.1% increase in the amount it paid out in income protection claims in 2023.
This is according to the mutual’s annual claims data for the year which revealed in 2023, The Exeter’s total payout for income protection claims grew from £9.9m in 2022 to £11.3m in 2023,.
The total payout for health insurance claims increased from £25.4m in 2022 to £28.4m in 2023.
Overall, 93% of insurance claims across The Exeter’s full offering resulted in payouts.
According to the insurer’s internal data, 96% of new income protection claims were successful, alongside 92% of health insurance claims and 90% of life insurance claims.
In total, the insurer paid out £41.2m to its members last year.
Over the year, a total of £1.5m was paid out to life insurance claimants; that included payouts for death claims and terminal illness claims.
In 2023, the most common reasons for an income protection claim were musculoskeletal conditions (42.8%), hip and knee disorders (10.5%), and mental health conditions (7.5%).
A similar trend was evident in the health insurance data for 2023. The most common reasons for health claims by volume were musculoskeletal conditions and connective tissue disorders (30%), followed by cancer related claims (23%).
The Exeter made 1,140 final decisions on new income protection claims in 2023.
Where the insurer could not pay (40 claims in total), the most common reason was due to misrepresentation (68%). This is where questions were not answered correctly at the point of application, leading to a different underwriting outcome being made.
The life insurance data reflected a similar trend. In 2023, The Exeter made 39 final decisions on life insurance claims for death and terminal illness. Where The Exeter was unable to pay four claims in total due to fraud or misrepresentation.
The outlook for consumer confidence
Last year, the insurer’s Health & Financial Fears research found that only six in 10 UK workers (58%) were confident that an insurance company would pay out on a claim.
However, The Exeter in fact paid 93% of all claims in 2023, with many industry peers reporting similar levels.
The discrepancy makes clear that there are still significant misconceptions amongst UK consumers which may be preventing them from taking out valuable insurance policies.
The Exeter said that the average claim duration for a full-term income protection policy was 88 weeks, equivalent to more than 1.5 years of support provided to the claimant.
As of 2024, the longest-running claim at The Exeter has been paid for more than 26 years, with over £320,000 paid out in that time.
Claire Hird, customer service director at The Exeter, said: “The number of claims we paid in 2023 highlights the value of health, income protection, and life insurance and the important role played by financial advisers in recommending these products to their clients.
“Every claim we pay provides valuable peace of mind to a member and we are delighted with the percentage of claims that we have paid in the last 12 months.
“Where we have been unable to pay, we are committed to working closely with advisers to reduce the reasons for this and hope to see instances of misrepresentation continue to reduce.
“Looking ahead we are continuing our exciting transformational journey at The Exeter which will see us further enhance the services that we offer our members, including at the point of claim.
“These changes, combined with the knowledge of our expert claims assessors and our strong history of paying claims, means that we are confident of offering standout claims experiences for our members across the health and protection markets.”