ICMIF member Shepherds Friendly (UK) has announced that it paid out GBP 3.25 million in income protection claims last year, a slight increase on the GBP 3.23 million paid out in 2024.

The Manchester-based mutual society says it accepted 97% of income protection claims in 2025 – up one percentage point from the 96% of 2024 and maintaining its five-year average of 95%.

The mutual supported 475 families over the course of the year – and rejected only 17 claims in 2025, a decrease on the 19 of 2024. All of the claims denied were due to applicants not meeting the policy terms and conditions.

Jonathan Sandell (pictured), CEO of Shepherds Friendly, said: “We’re pleased to have helped so many members and their families during difficult times last year and are proud that we increased our payout ratio even further. This demonstrates our commitment to providing our members with financial support when they need it the most – something we’ve been doing consistently well for 200 years and counting and will continue to do for many years to come.”

The most common reason for claims was musculoskeletal conditions, which resulted in 49% of claims – a decrease from 55% in 2024.

That was followed by chest/lung/nose/throat conditions, which accounted for 8% of claims, and mental illness at 6%.

Gastrointestinal conditions made up 5% of claims, cancer 3% and heart, neurological and surgery-related conditions each contributed 2% of claims.

Musculoskeletal conditions also accounted for the bulk of the payments made by value, at 52.1%.  Mental illness was responsible for the next highest portion at 12.5%, a figure that is more than double its percentage of claim numbers and was up one percentage point from 2024.

Chest/lung/nose/throat conditions represented 6.2% of the total payout, gastrointestinal issues 4.5% and cancer 3.7%.