Insurers pay out £200m every day - ABI

UK insurers are paying out nearly £200m in claims every day, according to new figures published by the ABI. 

The claims payouts include: 

• £19m to private motorists under motor insurance policies, and £9m to householders whose homes have been damaged or contents stolen or destroyed;
• £4m to businesses in respect of damage to their premises;
• £1m to travellers under travel insurance;
• £7m to cover the cost of medical treatments under private health insurance;
• £33m in pension annuity payments; and
• £54m to investors from endowment policies and investment bonds, and £37m to help dependents cope with the death of loved ones.

ABI director general Otto Thoresen said: “From protecting millions of customers to being a major contributor to the UK economy, the insurance industry plays a key role in society. The UK is the largest insurance market in Europe and third largest in the world. 

“While the industry has weathered the financial crisis, we have much to do. Insurers are rising to the challenges of issues such as the increasing flood risk, tackling the pension savings gap, reforming the compensation culture, and responding to UK and European regulatory change to ensure that the industry maintains its position as a world leader.”

The figures were contained in UK Insurance - Key Facts - a pocket guide to the UK insurance industry.