Shepherds Friendly has announced it paid 96.2% of Income Protection claims in 2022, an increase from the 95% of claims paid in 2021.
The mutual’s five-year paid claims average is 95.3%.
The main five reasons for claims were:
- Musculoskeletal (non-spinal) – 28.29%
- Spinal – 11.70%
- Mental Health – 10.65%
- Coronavirus – 9.24%
- Fractures – 7.09%
Claims were declined for either non-disclosure, the claims not meeting the terms and conditions, the claim being made for symptoms excluded under the plan, or misrepresentation.
Shepherds Friendly also released claims details on their added health and well-being support services, known as Enhanced Benefits:
- 16.2%. of Income Protection members used the Nuffield Health Virtual GP service throughout 2022 up to the end of February 2023
- Shepherds Friendly paid out £26,000 in death benefit (Bereavement Payment)
- Shepherds Friendly paid £2,500 in new child payments (£250 payment into a Junior ISA for Income Protection members who open a Shepherds Friendly Junior ISA)
David Palk, Head of Claims at Shepherds Friendly, said: “Our mutual ethos means we focus on supporting our Income Protection members when they need us the most. Income Protection is arguably the most important financial product a person can have and our focus on paying claims has meant valuable financial support at a very difficult time. These claims statistics prove the product paid out as promised when needed.”