10 March 2021 – Individual Income Protection provider Cirencester Friendly has paid 94% of claims in 2020, maintaining their 10-year average of 94% of claims paid.

During the year a total of 1,434 claim applications were made, of which 98.3% were eligible for consideration. This left 1,410 claims to be considered and of these, 94% were paid.

Reasons for rejecting claims included the inability to either provide proof of earnings or medical evidence, no loss of earnings or for previously undisclosed pre-existing conditions.

The greatest number of claims in 2020 were for accident or injury (29.9%), highlighting the value of insuring against the risk of less obvious causes of lost earnings. 15.5% of all claims paid were for COVID-19, resulting in the common infectious disease category increasing from 4.7% to 19.5%

Some other claims listed included depression, cancer, heart, or circulatory complications as well as back, neck and shoulder problems.

More than £7.8m in Benefit was paid out to Members, demonstrating the commitment that Cirencester Friendly are there when their Members need them the most. This total Benefit included all Income Protection claims paid in 2020, as well as further Benefit for the Society’s enhancements range, My Extra Benefits and their Value-Added Benefit, Children’s Critical Illness Support.

Having been at the forefront of publishing detailed claim statistics, the Income Protection provider has developed a transparent and accessible way of demonstrating how it reaches its overall percentage of claims paid and encourages Advisers to use the full claims data – both the headline figures and, crucially, the information about why claims aren’t paid. This is essential, not just to highlight that the vast majority of claims are paid, but to ensure that consumers understand, in advance of taking the cover out, what they must do to ensure claims are successful and their contract meets with their expectations.

Paul Hudson, Chief Executive at Cirencester Friendly said:

“The acid test for any income protection contract is will it pay out when the customer makes a claim? With an already proven track record in paying claims I am delighted that 2020 was no different and that we continued to support claimants in a variety of ways, including when they needed financial support.

2020 has been a remarkable and unprecedented year. As a result of very careful business continuity planning and preparation we were able to continue operating without interruption and maintain great levels of service to our Members and supporters. A testament to the resilience, dedication and hard work by everyone at Cirencester Friendly”.