The Association of British Insurers has today published new analysis which shows that general insurance and long-term savings companies in the UK paid out £153 million every day, which throughout the year is more than the entire GDP of Croatia.
At the same time, the ABI reveals that the industry makes a contribution to the UK economy worth £29.5 billion and paid close to £12 billion in taxes. The ABI’s latest Key Facts document sets out the role the UK’s insurance and long-term savings sector plays in supporting consumers and companies in their financial time of need.
The £55 billion paid out to customers in 2017 is made up of:
- £10.6 billion paid out for motor claims, such as repair, replacement or personal injury.
- £5.2 billion paid in property claims, of which £2.8 billion was for domestic homeowners and £2.4 billion was for commercial.
- £5.1 billion was paid through protection products, such as critical illness cover, income protection or life insurance.
- £2.7 billion was paid out on liability insurance policies to protect businesses.
- A record £766.5 million was paid out to help people with the cost of treating their ill or injured pets.
- £401.5 million was paid out to help 510,000 travellers to soften the burden of expensive medical treatment abroad and cancellations.
In long-term savings:
- £14.7 billion was paid to retirees through an annuity product.
- £16 billion was paid through investment and savings product contracts.
- Consumers also took increasing use of their pension freedoms – withdrawing £5.7 billion through drawdown or cash withdrawals.
The Key Facts document also reveals insurers’ and long-term savings firms’ economic impact in the UK:
- The sector contributes £29.5 billion to the UK’s GDP collectively.
- Close to £12 billion is paid in taxes.
- £1.8 trillion is held in invested assets.
- 303,500 people are employed by the industry, both directly and through auxiliary services.
- The UK is the largest insurance & long term savings market in Europe and the fourth largest in the world.
Huw Evans, Director General of the ABI, said:
“Millions of people and businesses turn to insurers in their time of need to deal with unexpected financial shocks. Our country’s SME sector can thrive because of the safety net provided by our world-leading insurance sector. This data reminds us that insurers and long-term savings providers pay hundreds of millions of pounds every day to get things back on track and to support people in their retirement. Our sector is helping Britain thrive and remains a key part of a prosperous and financially resilient economy.”