Insurance Claims Facts and Figures

Insurance policy approvalInsurance provides a financial safety net to help people cope with unexpected events, and new figures show just how much help insurance actually provides. A report by the Association of British Insurers has revealed that the industry pays out a staggering £77 million every day.

Payouts cover the spectrum of policies from home and car to travel and business, and a closer look at the report makes for interesting reading:

Home Insurance Insurers payout over £12.9 million a day on Buildings and Contents claims. Of the 26.7 million households in the UK: 20.4 million have Contents Insurance and 17 million have Buildings Insurance. Considering that combined cover costs an average of £24 per month it’s surprising that one in five households don’t have contents cover.

Car Insurance Fierce competition and a crackdown on fraud have driven down Car Insurance premiums to an average of £367 a year. However, with insurers paying out £27 million a day in claims, it may surprise readers to learn that the Motor Insurance market made an underwriting loss last year.

Business Insurance Small businesses are the backbone of the county’s economy and insurance companies payout £9 million in claims every day. The majority of payouts are for commercial liability claims, whether for mandatory products such as Employers’ Liability Insurance or optional products such as Public Liability Insurance.

Protection Insurance An impressive 98% of all protection claims were paid out last year, equating to £9 million a day. Protection Insurance is an umbrella term covering a variety of products from Income Protection Insurance to Critical Illness Insurance.

Travel Insurance Providers paid out £1 million a day on travel claims with approximately half going to help policyholders who needed treatment abroad.

Life is full of challenges and the figures above illustrate how insurance can help safeguard against nasty financial surprises. The insurance industry also plays a key part in the country’s economy contributing £29 billion to the GDP and £12 billion to the Treasury in taxes.

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