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Insurance payouts hit record – but are you covered

Insurance payouts hit record – but are you covered

Category: Insurance

Updated: 25/09/2015
First Published: 25/09/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Figures from the Association of British Insurers (ABI) have revealed that insurance payouts have hit a record level, with over £77 million being paid out in general and protection insurance claims every single day. The question is, are you covered?

Where does all the money go?

The £77 million figure can be broken down as follows:

  • Motor insurance claims (£27 million)
  • Property claims (£13 million)
  • Payouts for protection policies (£9 million)
  • Claims for business-related insurance (£9 million)
  • Accident claims (£9 million)
  • Private health insurance (£7 million)
  • Pet insurance (£1.6 million)
  • Travel insurance (£1 million)

That's a huge amount of cash going to families and businesses during times when they need financial support the most, and it really can be invaluable. However, it seems that not everyone is aware of how important it can be, with a clear protection gap remaining.

As an example, 24% of households don't have contents insurance in place, despite a typical buildings and contents policy costing just £24 a month. In addition, not even a quarter have life insurance, with just 24% investing in suitable cover. This is particularly worrying, especially for those with families they need to support, because if something were to happen to the main breadwinner, it could put additional stress on the family during an already difficult time.

"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," said Huw Evans, ABI director general. "Insurance means that people and businesses are not alone and have peace of mind to go about their daily lives, [but] there is some work to be done to build confidence in products, tackle underinsurance and help more people understand the value of protecting themselves."

Make sure you're covered

If you don't have insurance in place to protect your home, your health and your wallet, it's time to start considering the options. It may seem like an extra expense, but the right kind of cover could provide a lifeline should you need it, so talk to the experts to get advice and check out our insurance comparison tool to find suitable quotes thereafter.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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