Insurers Pay Out Over £450 Million a Day, Figures Show

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7th October 2014 11:03 - Financial Services

Insurance companies, on average, pay out around £452 million every day to customers in the UK, according to the Association of British Insurers’ (ABI) UK Insurance Key Facts 2014 publication.

By far, according to the research, pension and annuity payment companies pay out the largest sum per day, with the ABI’s facts indicating the sector shells out £348 million every 24 hours.

Approximately £52 million is paid out per day to savers from investment and saving policies, with £17 million forked out to private motorists under motor insurance each day.

A hefty £11 million is paid out in property claims, of which £8.1 million is to homeowners and £3 million to business owners, and £8 million worth of payments go out to protection policies, such as critical illness, to help people cope with a serious illness, and life insurance policies to help dependants.

Other UK payments made every day include: £7 million to help private health insurance customers receive medical treatment, £7 million to business customers in commercial liability claims, such as employers’ liability, and £1 million to travellers under travel insurance.

As a key contributor to the UK economy, insurers manage investments of £1.8 trillion - equivalent to one quarter (25%) of the UK’s total net worth and equating to £70,000 for every UK household - and contribute nearly £12 billion in taxes to the UK government.

Otto Thoreson, ABI’s Director General, said: "These remarkable statistics demonstrate the crucial role of the UK insurance industry. Millions of families and businesses rely on insurance products to help them cope with life’s uncertainties and plan for the future.

"The severe floods earlier this year, when insurers handled over 18,500 claims and paid £450 million to flood victims, further highlighted how vital our industry is in everyday life.”

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