The data is issued on the day that the ABI’s Annual Conference hosts over 300 senior representatives from the industry, regulators, and policymakers to debate the key issues impacting on the UK’s world-leading insurance industry.
Key Facts 2016 highlights the vital role 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.
Of the £131.4 million paid out in 2015, every day insurers paid to customers:
- £28.6 million to motorists for repairing or replacing vehicles and in personal injury claims.
- £15 million in property claims, of which £8.1 million was to homeowners, and £6.9 million to business owners under commercial claims.
- £9.9 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.
- £1.8 million to cover the cost of medical treatments to pets.
- £1 million to travellers under travel insurance, including often very expensive medical bills.
- £400,000 under trade credit insurance to help firms cope with the failure of a trading partner to pay money owed.
And on long-term savings and pensions, each day:
- £38 million was paid in annuity payments
- £36.7 million was paid in investment and savings policies.
Key Facts highlights that in the first year since the freedom and choice pension reforms were introduced in April 2015, £8.2 billion was withdrawn from pension pots: £4.3bn in lump sums and £3.9bn in payments from income drawdown.
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 £12bn in taxes to the UK Government.
- Manage assets of £1.6 trillion.
- Employs over 305,500 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 fifth (27%) of property insurance is purchased by customers directly.
- Long-term savings products tend to be taken with advice. Three-quarters of 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 the world would be a much more perilous place.
From helping people and businesses cope with unexpected events, to encouraging people to save for retirement, the insurance and long-term savings industry provides financial security for millions of families and businesses. The industry reflects the society it serves, and is constantly innovating to meet changing customer needs. However, we must do more to improve customer trust in the industry and ensure that customers have confidence that, if the worst happens, then their claim will be paid.
“As the largestinsurance market in Europe and fourth largest in the world, the UK industry makes a vital contribution to the economy. As we approach our departure from the EU, we must ensure our world-leading insurance and long-term savings industry is regulated appropriately, with effective trading routes into the EU and wider world, a competitive environment and continued access to the best talent.”
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