Income Protection Insurance Claim Payout Rates by Insurer

Online Quote & Apply
Compare Top UK Insurer Quotes Logos
12-08-2020

Income Protection is designed to replace a proportion of your salary if you’re medically unable to work due to any illness or injury.

So long as the policyholder has selected a plan with an ‘Own Occupation’ incapacity definition the Income Protection policy will pay out if they are unable to undertake their current job role.

A claim will start once the policyholder has been unable to work for the length of their deferred period. The deferred period is chosen at the outset of the policy and often ranges from a week up to 6 months.

The successful payout rate for Income Protection insurers is high across the market, hopefully providing reassurance that these plans will pay out in the event that illness or injury means you can’t do your job.

Overall Protection Payout Rates Across All Insurers

Each year the Association of British Insurers (ABI) publishes average payout rate statistics from across all insurers. The latest figures are from 2018 and show that 88.1% of all Income Protection claims were paid, with almost £650 million paid out in total.

From 2016, the Association of British Insurers is reporting Income Protection claims statistics differently. Previously, insurers included both ongoing and new claims in their payout rates and the sums they paid out each year.

Now only new claims are counted, which has affected the figures when you make a direct comparison to previous years,

Percentage of Income Protection Claims Paid by Insurer

The table below shows what proportion of income protection insurance claims were paid by each insurer (that published their payout rates).

As well as nearly every insurer sharing their claims payout data, certain providers now publish annual claims reports, providing detailed information on the common causes of claims, as well as reasons for rejections.

There is still a perception that these insurances don’t pay out, but fortunately the vast majority of claims are successful and provide an invaluable financial safety net for UK households.

Insurers
2017
2018
2019
Aegon
96%
93%

100%

Zurich
87%
95%

98%

Vitality
96%
97.8%

96.4%

Shepherds Friendly
96%
95.8%

96.3%

Cirencester Friendly
94.7%%
95.2%

95.7%

Holloway Friendly
96%
98%

94%

British Friendly
92.4%
94.7%

94%

Liverpool Victoria
96%
95%

93%

Royal London
92.1%
72.2%

91.6%

The Exeter

91%

93%

91%

Aviva
88.8%
87.3%

85.7%

Legal & General
95%
95%

82%

IMPORTANT NOTICE
The above Income Protection Insurance payout statistics shouldn’t be used to make an exact comparison of insurers but rather to get a general understanding of payout rates across insurers as a whole.

Insurers use slightly different criteria for categorising declined claims; for example, some insurers might treat a fraudulent claim as declined, whereas others could have a different way of classing them.

Given this, the above table isn’t a simple measure of whether which insurer offers the best Income Protection Insurance. One insurer might have better policy wording or could be more suited to you. That’s why it’s helpful to get advice from someone who knows the market and providers inside out.

Need Advice Choosing The Best Income Protection?

When considering income protection insurance, above all you’ll want to ensure that your selected insurer will pay the benefit you’re entitled to in the event of a genuine claim, being there when you need the financial support the most.

However, on top of claims data you’ll also want to know that you’ve chosen the best Income Protection for you as an individual, including finding an insurer that will be most suitable for your circumstances such as your medical history and general health and lifestyle.

Why Speak to Us…

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.

  • There is no fee for our service
  • We are independent and impartial
  • We’ve got bargaining power on our side
  • You’ll speak to a dedicated expert from start to finish
  • Benefit from our 5-star service
    We pride ourselves on providing a 5-star service, as can be seen from our 2872 and growing independent client reviews rating us at 4.92 / 5.
  • Gain the protection of regulated advice
  • Claims support when you need it the most

I had a great experience with Drewberry, they have a lot of knowledge and expertise with life insurance and income protection and were able to advise me and arrange suitable products. Highly recommend.

Lachlan Mellings
12/08/2020
Reviews.co.uk Logo
Compare Top 10 UK Insurers
Takes approx. 60 seconds
  • £

Or call us on 0208 432 7333

Compare Top UK Insurer Quotes Logos
Contact Us
Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map
Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.
Finalist - Moneyfacts AwardsFinalist - Cover Excellence AwardsHighly Commended - Protection Review Awards
Proud member of AMII (Association of Medical Insurers & Intermediaries)Proud member of Money Advice ServiceProud member of UnbiasedProud member of BIBA (British Insurance Brokers' Association)

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

Cookie Use

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacycookie policy.