UK insurers pay out £6.7m a day on protection policies
by Gill Montia
Latest figures from the Association of British Insurers (ABI) show that every day in 2011 insurers paid out £6.7 million to individuals and families who had made claims on life, critical illness and income protection policies.
• The average pay-out on a life insurance policy was £46,000, two and a half times the average annual take-home salary, and 97% of life insurance claims were paid.
• The average pay-out on a critical illness policy was £59,000 with 92% of claims being paid (up from 80% in 2005).
• The average claim in 2011 on income protection (IP) policies was for £14,000 annually, paying out on average for 260 weeks (five years) to help those unable to work.
The ABI adds that to increase the number of people who successfully make a claim on their IP policies, it is undertaking a review of best practice to ensure that products are as simple as possible and explained very clearly to customers.