By Daniel Hunter
UK insurers are now paying out nearly £200 million every single day to customers according to figures on the UK insurance industry published by the Association of British Insurers (ABI).
UK Insurance-Key Facts highlights the key role the insurance industry plays in people’s lives, its contribution to the UK economy and the key challenges facing insurers.
Payments made every day to customers include:
• £19 million to private motorists under motor insurance policies, and £9 million to householders whose homes have been damaged or contents stolen or destroyed.
• £4 million to businesses in respect of damage to their premises.
• £1 million to travellers under travel insurance.
• £7 million to cover the cost of medical treatments under private health insurance.
• £33 million in pension annuity payments.
• £54 million to investors from endowment policies and investment bonds, and £37 million to help dependents cope with the death of loved ones.
In addition, as a major contributor to the UK economy, UK insurers:
• Manage investments of £1.8 trillion, equivalent to 26% of the UK’s total net worth. This equates to £70,000 for every household in the UK.
• In the 2010/11 tax year, contributed £10.4 billion in taxes.
“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," Otto Thoresen, ABI’s Director General, said.
“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.”
UK Insurance-Key Facts is the indispensable pocket guide to the UK insurance industry. It contains a wealth of statistics on the size and scope of the industry and the role it plays in society and the economy.
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