VitalityLife paid out 96 per cent of all claims across its life, serious illness and income protection products in 2017.
The company's claims and benefits report showed this equated to pay outs totalling £36m across these products.
In total, it paid 982 claims across all products.
The number of health reviews VitalityLife carried out for its members increased by 23 per cent in 2017 and the company said it returned £60m back to customers through benefits such as discounted health screens and gym memberships and rewards such as activity devices, coffees and cinema tickets which incentivise members to look after their health.
Deepak Jobanputra, deputy chief executive at VitalityLife, said: "Our protection products are underpinned by our shared value insurance model and complemented by the Vitality healthy living programme, which helps our members to lead a healthier life and rewards them for doing so.
"This report demonstrates that encouraging better health and offering better cover are equally important and can make a real difference to people’s lives."
The conditions for which VitalityLife paid out most last year were cancer, heart and artery disease, stroke and nervous system disease, gastrointestinal and connective tissue disorders.
The average age of claimants was 49 for serious illness and income protection, and over 60 for life cover.
Damian O’Connor, managing director at adviser Roxburgh Financial Management, said: "Publishing claims stats is important, but we need to take it to the next level and detailed reports like VitalityLife’s are great for advisers to use with customers.
"It’s full of detail, not just about how many claims have been paid, but how engaged with the Vitality programme its customers are and the impact of health and fitness on their outcomes."