The figures show how the industry is helping households and businesses to cope with unexpected events, through insurance products such as motor, property, travel, pet, , trade credit, income protection, and critical illness.
Insurers pay out almost £8.2m in domestic claims daily to repair homes and replace contents, but despite an average combined buildings and contents policy costing just £24 a month, 1 in 5 UK households (24%) do not have contents insurance.
For protection insurance products only 1 in 4 (24%) of UK households have life insurance, yet protection insurers pay out more than £9m every day in financial support to families to help them cope with illness, injury or the death of a loved one.
The data also showed that long term savings products tend to be taken with advice. Three quarters (75%) of customers had some form of advice to buy a pension, protection or other long term insurance product.
Huw Evans, ABI Director General comments:
“From helping people and businesses after an unexpected event, to saving for their retirement, the insurance and long term savings industry plays a crucial role to help families and businesses through the financial challenges of life. Insurance means that people and businesses are not alone and have peace of mind to go about their daily lives.
“As the largestinsurance market in Europe and third largest in the world, the UK industry makes a vital contribution to the economy, in addition to the individuals it helps on a daily basis. It is no coincidence that the most stable and prosperous economies in the world, like the UK, have a strong insurance and savings sector at their heart.
“However, there is some work to be done to build confidence in products, tackle underinsurance and help more people understand the value of protecting themselves.”
