- Pay-outs for 99% of private motor, 87% of travel and 84% of home insurance claims in 2014 and 2015.
- Over 9,000 claims paid every day during 2014 and 2015. These resulted in payments totalling £20 million made to customers every day during this period.
- Home insurance claims success rate up over 5% as industry raises customer awareness.
The ABI today publishes figures on pay-out rates for private motor, home and travel insurance claims made during 2014 and 2015. The ABI’s largest claims analysis covered just over 7 million claims handled by 42 insurers, split 4.5 million private motor, 1.8 million home and 800,000 travel. This major analysis is the second time the data has been published, and aims to help identify where customers may need more help to understand what they are covered for, and reduce the level of declined claims. It follows on from ABI’s initial analysis of claims made during 2013 and 2014, which was published earlier this year.
These findings are published in the lead-up to the ABI’s 2016 Annual Conference on 22 November, and one year on from last year’s conference at which the plan to publish claims success rates was announced.
Key findings show that:
- Overall, 6.7 million private motor, household and travel claims were successful, with total pay-outs of just over £15 billion.
- For private motor, 99% of claims were successful, with an average pay-out of £2,347, compared to £2,160 during 2013/14
- For home insurance, 84% of claims were successful. This is up over 5% on 2013/14, and reflects the efforts made to increase customer awareness of the scope of cover and how to make a successful claim. This includes an ABI consumer guide on home insurance published earlier this year. The average claim was £2,627, compared £2,519 in 2013/14
- Almost 9 in 10 (87%) of customers claiming on their travel insurance received a pay-out. Claims included some very expensive medical bills, sometimes costing more than the price of the average UK house.
Huw Evans, ABI’s Director General, said:
“Insurers know that paying a genuine claim is the acid test for most customers. Being open and transparent about just how many claims get paid is vital to rebuilding trust and ensuring customers understand what their insurance policies cover.
“The ABI has worked with our members to ensure customers of motor, home and travel insurance now know how likely their claim is to get paid. Our second data analysis shows an increase in claims paid in home insurance since 2013/14 which encourages us to continue to help explain to customers how to buy the right policy.
“Insurance customers should take confidence that the vast majority of all claims are paid, providing peace of mind and greater security to our millions of customers.”
To help customers get the most from their home insurance we have published:
‘Home Insurance- What You Need to Know’ which is available here.
- Ends –
Notes for Editors
- Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147667
Sarah Cordey 020 7216 7375 Mobile: 07860 189071
Lauren Gow 020 7216 7327 Mobile: 07889 641702 - Below is a breakdown of the claims data:
Private Motor
2014/5 2013/4
Average claim paid: £2,347 £2,160
% of claims paid: 99% 99%
Claim pay-out rate
(number of claims paid as a % of
the number of policies written): 9% 10%
Domestic Property
Average claim paid: £2,627 £2,520
% of claims paid: 84% 79%
Claim pay-out rate: 4.1% 4.5%
Travel Insurance
Average claim paid: £880 £884
% of claims paid: 87% 87%
Claim pay-out rate: 2.5% 2.3%
3. The Association of British Insurers is the leading trade association for insurers and providers of long term savings. Our 250 members include most household names and specialist providers who contribute £12bn in taxes and manage investments of £1.9 trillion.
4. An ISDN line is available for broadcast
5. More news and information from the ABI is available on our web site, www.abi.org.uk.