The Exeter has published its income protection claims data for 2022, revealing that £9.9 million was paid to members last year.
The protection and health insurer paid out on 92% of new claims received from its members. The most common reason for claims were musculoskeletal conditions (40%), followed by COVID-19 (16%), and hip or knee conditions (7%).
The Exeter made 1,336 final decisions on claims in 2022, slightly higher than the previous year. Where the insurer could not pay out (107 claims in total), the most common reason was due to misrepresentation. This is where questions are not answered correctly at the point of application, leading to a different underwriting outcome being made.
The Exeter’s data also shows that the average age of claimants was just 36 years old on its Income First product, compared to 48 years old on its legacy products, which is says demonstrates how income protection is increasingly being used by younger workers to provide financial security if they are unable to work due to illness or injury.
In addition, the average claim duration for a full-term policy was 96 weeks, compared to 83 weeks for limited benefit policies. The Exeter also shared that its longest running claim in payment has been paid for over 25 years, with over £500,000 paid out in that time.
Claire Hird, the Exeter‘s customer service director, said: “Whilst it’s important to share our income protection claim statistics with the market, it’s just as important to remember that behind every claim there’s a member; someone who has looked to us to provide support and reassurance during a difficult time.
“In 2022, we assessed over 1,300 claims from our members, each of whom is an example of how illness or injury can impact our ability to earn a living.
“With the average income protection claim for both limited and full-term benefit policies lasting almost 90 weeks, and our longest claim being paid for over 25 years, our statistics show the vital role that income protection insurance plays in giving our members peace of mind and financial security.”
