ABI reveals protection and PMI payouts

The ABI published its UK Insurance Key Facts 2014, showing that overall, insurers paid out in excess of £450 million every day to UK customers.

The trade body's figures also revealed of the 26.4 million households in the UK in 2012, 3.1 million had mortgage protection, 0.7 million had term insurance and 0.4 million had income protection. Meanwhile, 1.6 million had private medical insurance.

In 2013, £3.1 billion was paid to 99,000 customers or families as a result of claims on protection insurance policies, an average of £8.4m each day.

There were 10.4m members of group life cover, group income protection and group critical illness schemes, of which 7.9m were life cover.

There were 29.3m individual term, whole of life, income protection and critical illness insurance policies in force. In addition, there were 2.1m collective life policies.

Around 3m new individual and group protection products were taken out in 2013, the report concluded. 

In 2013 97% of  protection claims were  paid out, including 98%  of term life insurance
claims and 92% of critical illness claims

 Otto Thoresen, director general of the ABI, said: "These remarkable statistics demonstrate the crucial role of the UK insurance industry. Millions of families and businesses rely on insurance products to help them cope with life's uncertainties and plan for the future."

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• Topics
• Individual Protection
• PMI
• ABI