Cirencester Friendly pays more than 95% of claims in 2022

28 February 2023

Individual income protection provider Cirencester Friendly paid 95.4% of claims in 2022. This represents a slight increase from 2021 when 93.6% of claims were paid and maintains an impressive record of paying on average more than 94% of claims over the past decade.

Cirencester paid 1,348 claims across their portfolio in 2022. Most claimants (59%) were aged between 31 and 50, but almost a quarter (23%) were aged 30 or under. This demonstrates the value of protection for anyone of working age and that accidents or illness can happen to anyone.

Challenging consumer perceptions

These figures from Cirencester Friendly are significantly higher than most consumers assume pay out rates for insurers to be. In the latest AMI Viewpoint survey with 3,000 UK adults, on average respondents thought only 60% of income protection claims were paid. By publishing these results and being transparent about its claims data, Cirencester Friendly is working hard to challenge this misconception. They urge other insurers to follow their lead and make their claim figures easily accessible to begin shifting perceptions.

More about the claims

In total, the Society paid out more than £8.5 million in 2022, helping hundreds of Members when they needed it the most. This figure covers payments relating to income protection, as well as the rest of the Cirencester Friendly portfolio, providing valuable cover to Members and their families.

The top reasons for Members to claim were accidents (26%), musculoskeletal conditions (26%) and infections (16%). The fact that accidents is one of the biggest causes of a claim demonstrates how anyone can be vulnerable to being unable to work for a significant period of time.

95% of claims were made for a deferred period of four weeks or less, helping Members avoid falling into serious financial difficulties. This shows Members can rely on the Society to be there when they need them the most.

Paul Reed, Director & Protection Specialist at Vita said: “There are many barriers that prevent people from taking out protection insurance and one of the objections we often hear is that their claims won’t be paid. These impressive figures from Cirencester Friendly disprove this. Working with an insurer with such a high rate of paying claims installs confidence in our customers and reassures them that taking out protection will provide the level of security they are looking for.”

David Mead, Joint Head of Protection at St. James Place said: “What stands out to me is that almost 23% of Cirencester Friendly’s claimants are aged 30 or under. There is a tendency for people to think protection is just for older people, but these show that it can be a vital safety net for people of any age. The pandemic highlighted that everyone is vulnerable to illness and these results will help us demonstrate the real value of protection to working people of all ages.”

CEO Andy Morris said: “I’m delighted that yet again Cirencester Friendly has paid out such a high percentage of claims. One of the most effective ways to increase the appeal of income protection is to reassure people that their claim is highly likely to be successful. As an industry, we need to work harder to get this message out, building a greater level of trust with consumers.  As a mutual society, Cirencester Friendly puts the needs of Members at the very heart of our organisation. These claims statistics demonstrate how strongly we adhere to this commitment and the real value our policies bring to Members. In 2023, we will continue to work hard in these challenging times to provide this important protection to more people, ensuring they have a financial safety net when they need.”