Members of the Association of Financial Mutuals (AFM) that offer income protection (IP) products paid out over £70m in claims to customers last year, which is up 38% from £52m in 2022.
The AFM said that part of the increase follows Wesleyan Assurance re-joining the association in 2023. The year prior, LV='s addition to the association largely drove a 53% rise in claims payments. AFM members paid out 92.1% of claims, compared to 91.6% in 2022. Overall, 7,000 customers received payments, compared to 9,000 in 2022, continuing an annual trend of decline. This decline was due to a drop in the number of Covid claims from 1,300 in 2022 to 169 in 2023 and because The Exeter was unable to supply data, with more of the claims being older rather than new claims coming in. T...
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