Dg mutual, an income protection specialist for self-employed professionals, paid out 99% of claims for the fifth year running.
The speed of payments has also improved with 67% of claims paid out within one week and 95% settled within two weeks; a 5% improvement on the previous year.
The 2012 figures show that each new claim averaged 15 days absence, with an average age of 46.
CEO of dg mutual, David Thompson, said: "Income protection insurance is there to provide an income when you are unable to work due to illness or injury so it's essential our customers receive their money as soon as possible.
"Our values in settling claims quickly are very important to us so it's great to see that 2012 was a record year for us."
