The Association of British Insurers have today (24th September 2014) released figures paid out by insurers in 2013 . They paid on average over £452 million every single day to industry customers in the UK. Making interesting reading, payments made in the UK made every day covered:

• £17 million to private motorists under motor insurance
• £348 million in pension and annuity payments
• £52 million to savers from investment and savings policies
• £11 million in property claims, of which £3milllion was to business owners involving commercial claims and £8.1 million was to homeowners
• £8 million from protection policies, such as critical illness, to help people cope with a serious illness and life insurance policies to help dependents
• £7 million to help private health insurance customers receive medical treatment
• £7 million to business customers in commercial liability claims, such as employers’ liability
• £1 million to travellers under travel insurance

Whilst these figures are impressive reading, the costs were not split down further. Examples are the difference split between Public Liability and Employers Liability claims. Conclusions could be drawn that there could be a stark contrast in payments and whether cheap public liability insurance premiums that are rated on a per capita basis influence the claims trend. Prime trades could also feature in claims ratios – groundworkers insurance and cheap plumbers liability have vastly different risk features.

According to the report published, Otto Thoresen, 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.” This refers to external floods and not escape of water claims often seen in cheap empty property insurance polices