The headlines are full of moans and groans from insurance companies about fraudulent claims, especially crash for cash accidents, personal injury claims and kerfuffle with the government over protecting flood risk homes.
Of course, the ABI is keen to tell everyone just how many claims are dealt with. The figures are for 2011 and are the latest available:
- Buildings insurance: 2.1 million claims worth £3.3 billion or £9 million a day. By average claim, this is £10,200 for fire, £1,500 for theft and £30,000 for flooding
- Car insurance: 3.2 million claims worth £7.1 billion or £19.4 million every day
- Damage to property: £1.4 billion was paid at, averaging £3.7 million a business day
- Work-related: Claims of £2.2 billion or £5.9 million a day for both workplace injuries involving staff and customers and professional indemnity cover
“Insurers have made an underwriting loss on private motor insurance for seventeen successive years, paying out more in customer claims and expenses than they received from customer premiums,” said the ABI.
“2010 was the worst result on record. The number and cost of bodily injury claims have soared, and the ABI is working hard with Government on civil legal reform so that costs can be reduced and premiums for customers can come down.
Astonishingly, the ABI also explained that insurance companies have failed to make a profit on employers liability cover since 2005. In 2011, £882 million was paid in premiums, but £1 billion was paid to settle claims.
The ABI neglects to give figures for home insurance profitability in the round-up, so the Insurance Blogger assumes they are in profit.