Protection and health insurer, The Exeter, has reported that £9.9m in income protection claims was paid to its members in 2022.

New figures published by the firm show it paid out on 92% of all new claims received from its members last year.

The most common reason for claims were musculoskeletal conditions (40%), followed by COVID (16%), and hip or knee conditions (7%).

The Exeter made 1,336 final decisions on claims in 2022, a total slightly higher than the previous year. Where the insurer could not pay out, for 107 claims in total, the most common reason was due to misrepresentation. This is where questions are not answered correctly at the point of application, leading to a different underwriting outcome being made.

Customer service director at The Exeter, Claire Hird, said: “Whilst it’s important to share our income protection claim statistics with the market, it’s just as important to remember that behind every claim there’s a member; someone who has looked to us to provide support and reassurance during a difficult time.

“In 2022, we assessed over 1,300 claims from our members, each of whom is an example of how illness or injury can impact our ability to earn a living.”

Elsewhere in The Exeter’s data, the average age of claimants was just 36 years old on its “income first” product, compared to 48 on its legacy products, which the firm said demonstrates how income protection is increasingly being used by younger workers to provide financial security if they are unable to work due to illness or injury.

Furthermore, the average claim duration for a full-term policy was 96 weeks, compared to 83 weeks for limited benefit policies.

Hird added: “With the average income protection claim for both limited and full-term benefit policies lasting almost 90 weeks, and our longest claim being paid for over 25 years, our statistics show the vital role that income protection insurance plays in giving our members peace of mind and financial security.”

Proposition director at PRIMIS, Vikki Jefferies, commented that the figures announced by The Exeter “highlight the necessity” of protection insurance for people of all ages and demographics, particularly for homeowners who would otherwise be left unable to make mortgage payments.

“The numbers above clearly demonstrate The Exeter’s commitment to making sure their clients are supported when they most need it, something that greatly aligns with our goal at PRIMIS of ensuring our proposition provides quality protection products and services for both AR brokers and their customers,” Jefferies said.

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