Travellers benefiting from insurance payouts
29 September 2015 09:12
Getting injured abroad can cost thousands without travel insurance
Around £1 million is paid out every day to travellers who need help with medical expenses when they are away from home, insurance industry figures show.
Across the insurance industry as a whole, claims totalling £77 million are paid out on a daily basis, according to the Association of British Insurers (ABI).
It says the findings show how the industry is helping households and businesses to cope with unexpected events, from motor, property, pet and travel insurance policies through to income protection and critical illness cover.
Life's financial challenges
Insurance companies pay out nearly £8.2 million in domestic claims per day to repair homes and replace contents, but despite an average combined buildings and contents policy costing just £24 a month, one in five UK households do not have contents insurance, the ABI says.
Only one in four households have life insurance, but protection insurers pay out around £9 million every day to support families who need help to cope with illness, injury or death.
The ABI's director-general Huw Evans says the insurance and long-term savings industry plays a "crucial role" in helping families and businesses get through the financial challenges that life throws at them.
However, he acknowledges that there is some work to be done to build confidence in products, tackle under-insurance and help more people understand the value of protecting themselves.
Breakdown of figures
The £77 million paid out every day by insurers includes £27 million to motorists to repair vehicles and cover injury claims, and £13 million in property claims - of which £8.2 million goes to homeowners and £4.7 million goes to business owners for commercial claims.
Some £9 million is paid out in protection policies, such as critical illness, income protection and life insurance, while another £9 million goes to business customers in commercial liability claims, such as employers' liability.
Elsewhere, £7 million helps private health insurance customers receive medical treatment, while £1.6 million is used to pay for medical treatment for pets.