Cirencester Friendly, the mutual Society paid 94% of claims in 2015 and saw premium income increase 5 per cent
Mutual insurer, Cirencester Friendly have published their latest claims statistics for 2015, paying a total of £3.2 million in sick pay benefit. During 2015 Cirencester received a total of 787 new claims, of which 97.6% were eligible for consideration. This left 768 claims to be considered and of these 725 (94%) were valid. The three main reasons why claims were refused included failure to disclose proof of earnings, no loss of income or non-disclosure.
The biggest reason for policyholders making a new claim in 2015 was a result of an accident or injury (29%), leading Cirencester to highlight the importance of putting adequate financial safeguards in place to protect against the unexpected. The length of claims throughout the year averaged 327 days, with the average age of male policyholders being 43, whilst female policyholders average age was 45.
Commenting on Cirencester Friendly’s 2015 claims statistics, Paul Hudson, chief executive said: “We are committed to supporting our Members when they need us most and we are thrilled to be able to report another year of very positive claims figures.
“Unfortunately the unfounded fear of claims being declined continues to impact the sale of income protection across the entire insurance industry, which is why we feel a transparent approach to the payment of claims is so important, both for consumer confidence and the negative perception that many intermediaries have of protection products.
“Many providers now publish claims statistics and I would urge advisers to use these figures to dispel customer concerns and emphasise the need for good income protection cover.”
|Depression Type Illness||7.59%|
|Common Infectious Disease||4.44%|
The above table denotes new claims made in 2015
|Average Annual Payment||£3,531|
|Highest Annual Payment||£38,873|
|Average Length of Claim||327 Days|
|Average Age of Male Claimant||43|
|Average Age of Female Claimant||45|
The above table denotes all claims paid in 2015
Along with publishing their claims statistics, Cirencester Friendly also published their 126th Annual Report. Cirencester experienced total income growth of 5.2% from £16.7m in 2014 to £17.6m in 2015. Premium income rose from £14.9m in 2014 to £15.6m in 2015, an increase of 5.0%, whilst investment income was up 5.7% from £1.7m to £1.8m.
Total income for the year for the mutual was £17.6m, representing an increase of 5.2% on 2014’s figure of £16.7m. Being a mutual organisation which is owned by and run for the benefit of its Members, £4.3m in bonuses was awarded to Members from trading surpluses.
In addition, the 125 Foundation, which will provide financial support to individuals and causes that benefit Members and their communities, was established to mark the 125th anniversary of the Society.
Paul Hudson, said: “I am thrilled that income, assets and membership have all increased in what has been another strong year for Cirencester Friendly.
“This is testament to the hard work and dedication of the Society’s employees, the strong relationships we have with advisers and our commitment to support our Members when they need us most.”