Almost half of Cirencester Friendly's claims in 2023 were from millennials

14 March 2024

• 95.8% of claims paid, up 0.4% on 2022 figures

• An average of 94.5% of claims paid over the past decade

• In total, more than £9.3 million was paid to Members in benefits

• 32% of claims related to accidents, 25% to musculoskeletal issues and arthritis

• Average age of male claimants is 40 and female claimants 42

• 47.6% of claims were from millennials (those aged 27 to 41)

• 95% of claims were made after a deferred period of four weeks or less

Individual income protection provider Cirencester Friendly paid 95.8% of claims in 2023, maintaining their strong record of being there when Members need them the most. Over the past decade, they have paid on average 94.5% of claims, demonstrating a reliable, consistent approach that both Members and Advisers can trust.

Cirencester Friendly is keen to be as transparent as possible with their claims figures. In 2023, 1,225 income protection claims were considered and 1,173 of these were paid. 52 claims were declined because no proof of income was provided, the claimant had a continuing income, or the information received either arrived too late or was inaccurate.

Claimants range from 18 to 64 years old

There is a span of almost 50 years between the youngest and oldest claimants, demonstrating that protection can benefit anyone, of any age. Almost half of the claims (47.6%) for 2023 came from Millennials, those aged 27 to 41 years old, in prime working age and the most likely to have young families to support. Just over a third came from Generation X, those aged 42 to 58 years old and just 7.4% came from the oldest generation in the workforce, Boomers who are 59 and over. Almost one in 10 claims came from the youngest workers, Gen Z, who are aged 17 to 26, helping them to avoid falling into financial difficulties right at the start of their careers.

Stark gender difference in reason for claims

The most common reason for men to claim was accidents, accounting for just over four in ten (41%) claims. This was followed by musculoskeletal conditions and arthritis (29%) and hip and knee problems (10%). In contrast, just 18% of claims from women related to accidents. The most common reason for them to claim was musculoskeletal conditions and arthritis, accounting for just under a quarter of claims (23%). The third most common reason for women to claim were mental health conditions, relating to 16% of claims. This is considerably higher than for men, where only 4% of claims were due to mental health conditions.

Covid claims

Coming up to the fourth anniversary of the first lockdown, Cirencester has also released details of their Covid claims, which have been dealt with separately to non-Covid claims. Between 2020 and 2023, they received 653 claims, paying 589 of them, a rate of just over 90%. In total, £618,154.89 has been paid out so far with the average claim lasting just under 30 days.

Liam Morrissey at Group Sales Director at Insurance First said: “I’m delighted to see Cirencester Friendly’s 2023 claim stats and how positive they are for our clients.  Once more it highlights the importance of our clients understanding the consequences of misrepresentation and, as advisers, ensuring we encourage honesty from our clients through the application stage. 

I feel that Cirencester Friendly are looking to put the client at the forefront of everything they do by constantly improving their proposition and underwriting to enhance the customer journey and outcome, this is evidenced with their increased claim pay out rates year on year.

Having had several of our clients experience the claims process with Cirencester, we cannot recommend them highly enough, the process is incredibly efficient and swift, at a time when our clients really need the help of their protection.  This is where our clients appreciate just how valued they are by Cirencester Friendly.”

Director of Customer Experience, Michelle West-Wiggins: “Our mission is to be here when our Members need us the most and these claims figures demonstrate we are living up to this goal. However, we cannot afford to be complacent. There is always more we can do to ensure both Advisers and Members are clear about when they can claim and can do so as quickly and easily as possible. We’ll be working hard throughout 2024 and beyond to enhance our claim and digital proposition and build even closer relations with our partners to make this happen.

As a mutual society, we are proud to often go above and beyond what is required or expected to make a genuine difference. For example, we prioritise our Childrens Critical Illness Support, paying claims as quickly as we can, sometimes in as little as 48 hours. We understand having a seriously ill child is every parent’s worst nightmare and the last thing they need to worry about is their finances. By taking an empathetic approach we can help ease the extraordinary burden they face.”