Zurich paid 93 per cent of income protection claims and almost £191m in total for all protection related claims.
This total included £63.1m for critical illness, £116m for life claims and £11.8m in income protection policy payments.
Of the 687 income protection customers receiving payments in 2014, 69 were new claims and just 7 per cent were declined because the policy’s criteria were not met.
The average monthly payment per customer last year was £1,524, while the top four reasons for new claims were cancer (12 claims), mental illness (12 claims), musculoskeletal including spinal disorders (20 claims) and neurological conditions (10 claims).
Late last month, the firm stated that it paid more than 91 per cent of its critical illness claims in 2014, amounting to £63.1m to 750 customers.
Meanwhile, since 2009 British Friendly paid, on average, over 96 per cent of more than 5,000 income protection claims.
Peter Hamilton, Zurich’s head of retail propositions, said he hoped the statistics reassure and remind people how invaluable income protection cover is.
“As well as the financial benefits paid out to customers, the rehabilitation element of the product that can help people back to work, such as counselling or physiotherapy, is often overlooked
Recent research by Drewberry Insurance suggested that while one in four people have pet insurance, only one in 14 have income protection.
Mr Hamilton added: “This has serious repercussions not just for individuals, but for employers and the government which is why we have recommended tax incentives for individuals and for employers who provide cover.”
Zurich recently argued that the protection market needs more government support to raise awareness, given that income protection products can help save the state in terms of payouts, according to UK life business chief executive Gary Shaughnessy.
peter.walker@ft.com
