Members of the Association of Financial Mutuals (AFM) paid a record £91.5m in income protection claims in 2024.
According to newly released figures, AFM members paid 94.1% of the 9,420 new claims submitted in 2024 — up from 92.1% in 2023. The average claim amounted to £29,948.
Musculoskeletal conditions were the most common reason for claims, accounting for 40%, followed by other medical conditions (15%) and mental illness (11%).
While the average claim duration fell to 53 weeks (down from 68 weeks), nearly a quarter of claims continued for more than five years. AFM said this underlined the value of long-term support provided by income protection policies.
Additionally, 380 members received rehabilitation support from their providers.
More than 67,500 new income protection policies were sold by AFM members during the year, valued at over £40.8m. These policies represent nearly a quarter of the UK income protection market, based on aggregate industry data, according to AFM.
Chief executive Andrew Whyte said: “Income protection is a valuable tool helping to build individuals’ financial resilience so that they can weather periods of uncertainty. With these products, AFM members provide peace of mind to policyholders with policies that meet their particular needs and at a price they can afford.”
The AFM is the trade body representing mutual and not-for-profit insurers, friendly societies and other financial mutuals across the UK.
