23 February 2015
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Zurich has revealed it paid out 93% of income protection claims to over 687 customers during 2014.
This amount is part of a total of £191m paid by the insurer in protection claims last year, including £63.1m for critical illness and £116m for life claims.
Of the 687 income protection customers receiving payments in 2014, 69 were new claims and 93% of these were successful.
Just 7% were declined because the policy's criteria were not met, the insurer said.
The average monthly payment per customer last year was £1,524, while the top four reasons for new claims were cancer (12 claims), mental illness (12 claims); musculoskeletal including spinal disorders (20 claims), and neurological conditions (10 claims).
Peter Hamilton, head of retail propositions at Zurich said: "We hope that these statistics reassure and remind people how invaluable income protection cover is. As well as the financial benefits paid out to customers, the rehabilitation element of the product that can help people back to work, such as counselling or physiotherapy, is often overlooked
"Recent research [from Drewberry Insurance] suggests that while one in four of us has pet insurance, only one in fourteen have income protection, which is barking mad."
He continued"This has serious repercussions not just for individuals, but for employers and the government which is why we have recommended tax incentives for individuals and for employers who provide cover."
Following a major report last year, Zurich is continuing to urge the government to stimulate the IP market by introducing a temporary annual tax-rebate of £50 per insured person to both companies offering IP to employees, and to people taking up the insurance privately.
