Britain's insurers pay-out huge numbers to settle claims

 
Oliver Gill
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The world would be a "much more perilous place" without insurance, according to the Association of British Insurers (Source: Getty)

Britain's insurers are writing cheques for a whopping £131m a day according to one of the sector's main industry bodies.

The Association of British Insurers (ABI) revealed the news today and while a large proportion of pay-outs are related to long-term savings and pensions, paying out for motoring claims represent a hefty chunk of what insurers must fork-out.

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Of the £131m, general insurance pay-outs total £57m a day, of which motor insurance and related personal injury account for over half (£29m). Property insurance (£15m) and protection policies (£10m) pay-outs are the next highest on the daily list.

Proving that Britain is a nation of pet-lovers, a staggering £1.8m was paid out each day to settle pet insurance claims.

Despite the aggregate size of pay-outs, the ABI's director general Huw Evans said the insurance sector needs to 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".

The ABI stressed the "vital contribution" the insurance industry made to the UK economy, highlighting the sector pays nearly £12bn in tax and employs over 305,000 people. It added that the UK insurance market is the largest in Europe and the fourth largest in the world.

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Evans called for the sector to not be adversely impacted by Britain's exit from the EU.

"As we approach our departure from the EU, we must ensure our world-leading insurance and long-term savings industry is regulated appropriately," he said. "If insurance did not exist the world would be a much more perilous place."

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