Record UK Insurance Claims Payouts

Record UK Insurance Claims Payouts.

The organisation that represents UK insurance companies, the Association of British Insurers, has revealed that the UK insurance industry is now paying out a record number of claims.

• A record £77 million per day is paid out in claims.

The majority of this will be for large payout claims such as life insurance.

• For household insurance, of the above £77 million per day, £8.2 million is paid out each day.

Surprisingly, the Association of British Insurers also suggested that there is a huge need for insurance in the UK given that:

• 25%, that is a quarter of all households in the United Kingdom do not have life insurance
• 20%, that is one in five households in the United Kingdom do not have household contents insurance

Comment

As ever with insurance, any underinsurance or lack of insurance as can be seen from the above figures may be misconstrued. We are an ageing population so not every household needs life insurance if there is no debt or if the household has access to adequate savings. We are surprised that 20% of households do not have contents insurance although, again, does this mean that many households either cannot afford insurance or perhaps they have no need for insurance if their worldly goods are not that valuable?

If you are not sure whether you have enough life insurance or income replacement protection insurance please contact us as the premiums may surprise you.