Royal London’s UK intermediary protection businesses – Scottish Provident and Bright Grey – paid 73 new income protection claims in 2014, of which 90 per cent were successful.
The firms had 246 income protection claims in payment, totalling just over £3.2m. Average pay out for an income protection claim last year was over £13,000 and the average age was just 41 years old.
The top five reasons for claim were cancer, musculoskeletal conditions, mental health illnesses, stroke and multiple sclerosis; representing over 80 per cent of new claims in 2014.
Average duration of an income protection claim was just over four years, demonstrating how long income protection payments can help in providing support for customers and their families when they need it most.
Other insurers have reported higher income protection payout rates in recent months, with Cirencester Friendly reporting a 94 per cent rate in May, the same amount as Exeter Family Friendly in April.
Friends Life only managed 86 per cent of income protection claims paid in 2014, while Aegon UK paid just over 92 per cent of new protection claims received last year.
Zurich fared a bit better, paying 93 per cent of income protection claims in 2014, while British Friendly beat them all, paying 96.7 per cent of protection claims last year.
peter.walker@ft.com
