79% of home insurance policyholders who made a claim were successful while 99% of motor claims were paid out
The ABI has published historical home and motor claims figures today to gain greater trust from customers and increase transparency around insurance claims.
More than one in five home insurance claims were declined in 2013 and 2014, figures released today by the ABI show.
The study showed that 79% of home insurance policyholders who made a claim were successful, receiving a typical payout of £2,520.
The main reasons behind home claims being rejected, ranged from the value of the claims being below the policy excess, lack of maintenance on the property leading to wear and tear to a purchase of the wrong type of cover.
Figures published by the ABI for the first time also showed that 99% of motor claims were paid out in the same period.
The average payout was £2,160. Cases and policies tended to be simpler, leading to fewer denied claims.
The figures are based on 6.9 million claims handed by 19 insurers, including 4.3 million motor insurance claims, 1.8 million home insurance claims, and 800,000 travel insurance claims.
Travel insurance claims recorded a success rate of 87%, the ABI said, with an average payout of £884.
The reasons for rejection included failure to declare a pre-existing medical condition and failure to prove that belongings had been lost.
ABI director general Huw Evans said that the figures were published to gain greater trust from consumers.
He added: “Contrary to popular belief, insurers want to pay honest claims. It helps nobody when customers have bought the wrong product or have not disclosed important information.
“So we will use the analysis we are publishing today to drive awareness campaigns to improve even further the acceptance rates for home and travel.
“Buying insurance should never just be about getting the cheapest price in the quickest time possible, it should be about ensuring you have the right product for your hour of need.”