Individual income protection provider Cirencester Friendly paid 95.4% of claims in 2022.
This represents a slight increase from 2021 when 93.6% of claims were paid and maintains its record of paying on average more than 94% of claims over the past decade.
Cirencester paid 1,348 claims across their portfolio in 2022. Most claimants (59%) were aged between 31 and 50, but almost a quarter (23%) were aged 30 or under.
In the latest AMI Viewpoint survey with 3,000 UK adults, on average respondents thought only 60% of income protection claims were paid.
In total, the Society paid out more than £8.5 million in 2022, helping hundreds of members when they needed it the most. This figure covers payments relating to income protection, as well as the rest of the Cirencester Friendly portfolio.
The top reasons for members to claim were accidents (26%), musculoskeletal conditions (26%) and infections (16%).
95% of claims were made for a deferred period of four weeks or less, helping members avoid falling into serious financial difficulties.
Paul Reed, director & 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.”
Cirencester Friendly’s CEO Andy Morris said: “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.”