Pioneer Friendly Society has lived up to its name and become the first insurer to reveal its declined income protection claims statistics.
By revealing its claims statistics, Pioneer is helping to demonstrate to their customers the true value of Income Protection Insurance.
Pioneer paid out 96.57% of all the IP claims it received in 2005, with musculoskeletal and back injuries accounting for most of the claims, amounting to 20% and 17.10% respectively.
Of the 3.43% of the claims that were not paid out, 25% were rejected due to non-disclosure and 23% declined because exclusions applied, including 17% due to the fact that the policyholder was receiving full sick pay from their employer.
Commenting on the figures, Pioneer's chief executive Andrew Chapman said: "Claims statistics have rightly been the subject of great interest recently as they are a litmus test. Insurance should not only be affordable but also effective. Pioneer prides itself on putting its customers' interest first, and this is demonstrated by our straightforward approach to the payment of claims at a time of crisis for our policyholders."
Income protection cover: News update: August 2006