Just ten mutual insurance providers paid out a staggering £26m in income protection (IP) insurance claims to nearly 7,500 policyholders last year, new figures reveal.
Research by the Association of Financial Mutuals (AFM) shows that on a like-for-like basis, the volume of claims paid across AFM members has increased by 39% in just two years.
It mean that 95.1% of claims received were paid in the year, up from 94.4% in 2019.
That compares to figures from the Association of British Insurers which suggests that 88.1% of all IP claims were paid in 2018.
Of the 4.9% of rejected claims, 41% were as a result of non-disclosure.
A further 29% of those rejected claims were where the claim was for an excluded condition or was outside the scope of the policy.
Martin Shaw, Chief Executive of AFM, said: “The uncertainty caused by Covid-19 has made people more aware than ever before about the impact of being unwell and unable to work.
“These results are testament to AFM members’ commitment to paying claims whenever possible and demonstrate how they are working hard to make IP accessible and easier to make a claim on.”