Insurer, British Friendly leads the way with 96.7% of all income protection claims statistics paid over the last 10 years, showing the industry how it’s done
British Friendly, has today, 20 January 2016, published impressive claim statistics for their income protection claims over the last ten years. Figures reveal that the mutual insurer has paid 96.7% of all income protection claims since 2006. This compares with an industry average for income protection payouts in 2015 of 91.2 per cent, further proving how insurers can pay claims.
The most common reason for claims over the last decade is orthopaedic/musculoskeletal conditions (30%) followed by viral illness/respiratory (20%) and psychiatric/mental health conditions (10%) that, together, have made up 60% of claims over the decade.
The figures also show details of the age and gender profiles of claimants. Overall, men account for 56.8% of all claims, while the most common age range for a claim is 50-59 years for both males and females.
Iain Clark, marketing and distribution director at British Friendly, said: “We believe that paying claims is the primary thing that an insurer does and, by paying 96.7% of claims over a decade, British Friendly has proven that income protection does exactly what the customers need it to do – pay claims.
“Our survey in May showed that only 2% of respondents believe income protection claims are paid more than 90% of the time by the UK’s top insurers, yet the policy really does pay out that often.
“As our figures show, when you buy income protection, you can be assured that this is a product that delivers. By publishing this information we hope it will help to change consumer perceptions.”
Tom Conner, director at adviser Drewberry Insurance, said: “British Friendly’s data is great news for everyone who knows that income protection is probably the most important insurance policy a working person can own.
“From our annual consumer research we know that consumers still distrust insurers and vastly underestimate the amount of claims that are paid out.
“People believe that insurers look for reasons to avoid paying claims and so we need to tell them as often as possible, not only that these policies are important to have, but that they really do deliver what they promise.”
Mark Myers, Chief Executive of British Friendly said: “All our occupations are priced the same – we have no classes at British Friendly. Equally, we never penalise individual members when they make a claim by putting up their premiums in isolation. We manage the risk through reviewable premiums, which gives us the flexibility we need to keep on paying as many claims as possible.”
Alan Waddington, National Account Manager at British Friendly, said: “We believe that Income Protection is the most undervalued but invaluable insurance. That’s why we focus purely on IP and nothing else. It’s in our members’ best interests that we provide them with the best possible cover for the most important insurance that will pay out when they need it.”