Cirencester Friendly maintained its claims payment record in 2024, paying 95.8% of income protection claims, matching its performance in 2023.

Despite a 15% rise in claims submitted, the mutual insurer paid out over £10 million to its members, reinforcing its commitment to providing financial security during periods of illness or injury.

In total, 1,414 claims were considered, with 1,354 successfully paid out. Among the 60 claims that were declined, the most common reason was that the claimant continued to receive income, followed by non-disclosure, lack of proof of income, alternative insurance coverage, or unemployment.

RISE IN MUSCULOSKELETAL CLAIMS

For the first time, musculoskeletal conditions related to the back, neck, and shoulders surpassed accidents as the leading cause of income protection claims, affecting both male and female members. Even among Gen Z claimants (ages 17-26), nearly a third (31.9%) of claims were due to these conditions.

This trend aligns with a British Chiropractic Association survey, which found that 73% of UK adults experience back pain daily.

WOMEN TWICE AS LIKELY TO CLAIM FOR MENTAL HEALTH CONDITIONS

While musculoskeletal issues accounted for around a third of claims across all genders, a significant gender disparity emerged in mental health-related claims.

Among female claimants, over 10% of claims were due to mental health conditions, such as depression, whereas for men, the figure was just 4.7%—less than half the rate of women. This mirrors trends from previous years, suggesting that men may still be less likely to seek support for mental health concerns. A recent Bupa study found that one in three men do not discuss mental health challenges with friends or family.

With the income protection market experiencing strong growth in 2024, the ability of insurers to process and pay claims efficiently has been a key focus for advisers and clients.

Chris Mason, strategic partnerships manager at PRIMIS, highlighted Cirencester Friendly’s approach: “We have seen significant growth in the income protection market in 2024 and a robust claims process provides customers with peace of mind. Cirencester Friendly’s transparency in publishing these statistics underscores their dedication to clarity and member support. Their consistent payout rates and responsiveness to diverse claimant needs highlight their role as a leading income protection provider in the UK market.”

With nearly half of claims coming from millennials, Cirencester Friendly’s director of customer experience, Michelle West-Wiggins, emphasised the crucial role of income protection in ensuring financial security: “Our latest claims figures reflect our core objective to be there when Members need help the most. The fact that there is almost 50 years difference between our oldest and youngest claimants shows protecting your income is important no matter what age you are or what job you do. Anyone can have an accident or suffer ill health.

“Almost half of claims were from millennials, who are most likely to have young families to support. They are likely to have high fixed outgoings, and being unable to work for one or two months can have a severe impact on their finances—not just while they are ill or incapacitated but for years to come. Providing essential cover to pay the bills and avoid the need to rack up significant debts can make a huge difference to their future and protect their livelihoods.”