The Association of British Insurers has published figures in their UK Insurance-Key Facts revealing how much money is paid out to UK customers each day.
UK Insurance-Key Facts highlight how the insurance industry plays an important part for the UK economy and in people’s lives. The latest figures have shown that £200 million is paid to customers by insurers each day.
Payments made every day to customers include £19 million to private motorists under motor policies, £9 million to homeowners whose homes have been damaged or contents stolen or destroyed, £4 million to businesses and £1 million to travellers protected by travel insurance.
The biggest expense that insurers pay out from the figures published was £54 million to investors from endowment policies and investment bonds. £37 million is also paid to help dependants cope with the death of loved ones and £33 million in pension annuity payments.
In addition to these figures insurers also contribute to the UK economy by a managed investment of £1.8 trillion which is the equivalent of 26% of the UK’s net worth. £10.4 billion in taxes was also contributed for 2010/2011 tax year.
Otto Thoresen, ABI’s Director General, commented on the figures: “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.”
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By Amanda Bainbridge