Last year a record £160 million was paid out every day by insurance and long term savings firms to customers - equivalent to the cost of around 700 houses - according to latest industry data published today by the ABI.
ABI’s Key Facts 2017 sets out the vital role that insurance and long-term savings is playing in helping households and firms cope with unexpected events and plan for the future, as well as contributing to the UK economy.
Payments made to customers:
£160 million was paid out every day in 2016 to UK customers which included:
- £33.3 million to motorists for repairing or replacing vehicles and in personal injury claims.
- £12.9 million in property claims, of which £7.4 million was to homeowners, and £5.5 million to business owners under commercial claims.
- £12.5 million from protection policies, such as critical illness, income protection and life insurance, to help people cope with financial strains arising from a serious illness, injury or death.
- £8 million in liability claims to protect businesses
- £1.9 million to cover the cost of medical treatments to pets.
- £1 million to travellers under travel insurance, including often very expensive medical bills.
- £574,000 under trade credit insurance to help firms cope with the failure of a trading partner to pay money owed.
On long-term savings and pensions, each day:
- £40 million was paid in annuity payments
- £45 million was paid through investment and savings policies.
- In addition, in the second year since the freedom and choice pension reforms were introduced in April 2015, £5.7 billion was withdrawn from pension pots.
As a key contributor to the UK economy, insurers and long-term savings providers:
- Contribute £35 billion to the UK Gross Domestic Product (GDP).
- Pay nearly £12 billion in taxes to the UK Government.
- Manage assets of £1.7 trillion.
- Employ over 320,000 people.
How people buy their insurance:
Motor and home insurances are more likely to be purchased directly than long- term savings products. Over half (56%) of motor insurance and a quarter (27%) of property insurance is purchased by customers directly. Long-term savings products tend to be taken with advice. Eight out of ten customers had some form of advice when buying a pension, protection or other long-term insurance product.
Huw Evans, ABI’s Director General, said:
“If insurance did not exist society would not function properly. Without it millions of families and businesses would struggle to cope with unexpected events, and savers would risk retirement poverty. The industry is constantly innovating to meet changing customer needs and focusing on improving trust levels so that customers have confidence that, if the worst happens, then their claim will be paid.
“The industry makes a vital contribution to the UK economy as a world-leading sector. This is why the cross-party Treasury Select Committee recently called for it to be treated as a ‘priority sector’ in Brexit negotiations so UK firms can continue to serve our wide customer base in the EU. The sooner businesses have certainty on a constructive future relationship, the better.”
Read our latest Key Facts here.
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Notes for Editors
1. Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147667
Sarah Cordey 020 7216 7375 Mobile: 07860 189071
Dominic Stannard 020 7216 7350 Mobile: 07889 641702
Melanie Fernandes 020 7216 7660 Mobile: 07720 497617
2. The Association of British Insurers is the voice of the UK’s world leading insurance and long-term savings industry.
A productive, inclusive and thriving sector, we are an industry that provides peace of mind to households and businesses across the UK and powers the growth of local and regional economies by enabling trade, risk taking, investment and innovation.
3. An ISDN line is available for broadcast
4. More news and information from the ABI is available on our web site, www.abi.org.uk.