24th September 2015
UK insurers have doled out the equivalent of £77m in claims every day according to new figures from the Association of British Insurers (ABI).
The trade body’s ‘Key Facts 2015’ research showed that insurers pay out almost £8.2m in domestic claims daily to repair homes and replace contents.
But despite an average combined buildings and contents policy costing just £24 a month, some 24% or more than one in five households do not actually have contents insurance.
In addition only 24% of households have life insurance, yet protection insurers pay out more than £9m every day.
Every day, payments made by insurers included:
The data also shows that last year there were 20.8m individual pension policies in force. In the first three months since the Freedom and Choice reforms in April 2015, £2.5bn was paid out from pension pots. More than £2.3bn was used to buy regular income products such as annuities or income drawdown products.
Huw Evans, ABI director general said: “As the largest insurance market in Europe and third largest in the world, the UK industry makes a vital contribution to the economy, in addition to the individuals it helps on a daily basis. It is no coincidence that the most stable and prosperous economies in the world, like the UK, have a strong insurance and savings sector at their heart.
“However, there is some work to be done to build confidence in products, tackle underinsurance and help more people understand the value of protecting themselves.”