British Friendly paid 89% of new Income Protection claims in 2023 and just under £5m to its members in Income Protection, discretionary BF Care claims and Fracture Cover claims.
It has paid 94% of all claims over the last 18 years.
The five most common reasons for claims in 2023 were:
- Musculoskeletal – 54.95%
- Chest/Lung/Nose/Throat – 7.91%
- Surgery (not covered in other categories) – 7.21%
- Mental Illness – 5.41%
- Cancer – 5.41%
When British Friendly’s Simplified moratorium product is excluded the overall claims rate is 91%.
The main reasons for declined claims were 49.18% due to misrepresentation, while definition of incapacity not being met was 26.23% and pre-existing conditions for the Simplified product under the moratorium period accounted for 17.21%.
Maxine Jannetta, head of claims at British Friendly, said: “We’re very proud of the amount of support we provide to our members through paying claims, focusing on rehabilitation and recovery as well as offering a range of additional benefits through our BF Care and Mutual Benefits programmes.
“Last year, we also introduced the option of adding Fracture Cover to all new policies, so it’s positive to see we’re already able to provide support for some of the members who added this benefit within a year of its launch.”