The UK insurance industry paid out more than £450 million every day in 2013, according to the latest figures relating to the sector.
It highlights the importance of insurance in helping UK households and businesses to cope with unexpected issues.
More than £452m was paid out daily, according to the ABI’s UK Insurance Key Facts 2014 publication, a look at the various aspects of the insurance sector.
The main payouts
Of those payments made every day, £348m was in pension and annuity payments while a further £52m went to savers as a result of investment and savings policies.
Approximately £17m was paid to private motorists under motor insurance policies, while £11m per day accounted for property claims.
Of that figure, £8.1m was paid to homeowners and £3m to business owners that had made some sort of commercial claim.
A further £8m was paid out daily to those with protection policies – designed to support those with serious illnesses – and life insurance.
In addition, £7m was paid to health insurance customers to cover medical costs and a similar sum was paid to business customers for commercial liability claims.
Travellers also claimed around £1m every day through travel insurance policies, showcasing how many people are regularly visiting other parts of the world.
Insurance and the UK economy
The insurance sector is a key contributor to the UK economy, as it manages around £1.8 trillion of investments – approximately one quarter of the UK’s total net worth.
This equates to somewhere in the region of £70,000 for every household in the country that is protected and managed.
The sector also contributes approximately £12 billion to the UK government in the form of tax, showcasing the crucial role that insurance plays.
Nearly 18,500 claims were made by flood victims earlier in the year, with payouts of more than £450m made to help people get their lives back on track.
Thinking about individual finances
While insurance can help to provide certain levels of protection for some of life’s uncertainties, the need to carefully manage individual finances is still clear.
Financial management is extremely important, so keeping spending in check with a prepaid card is a great way of ensuring that you don’t spend more than you would like.
A prepaid card limits spending to the amount on the card at any given moment and is not directly linked to a bank account, making funds safer as a result.
The cards can easily be topped up or replaced if required, while accounts can be checked regularly online if needed.