Research by the ABI has revealed that the insurance sector is paying out £160m a day.

The ABI also says that the insurance industry is a major contributor to the UK economy, generating £35bn a year towards the UK Gross Domestic Product (GDP) and nearly £12bn in taxes to the UK Government.

The sector also manages assets of £1.7trillion and employs over 320,000 people, according to the ABI’s annual review.

The latest industry data also revealed that last year £160 million was paid out every day on insurance claims and long term savings returns to customers.

Payments made each day include:

£12.9 million in property claims, of which £7.4 million was to homeowners, and £5.5 million to business owners under commercial claims.
£12.5 million on protection policies, such as critical illness, income protection and life insurance.
£8 million in liability claims to protect businesses
On long-term savings and pensions, each day:
£40 million was paid in annuity payments
£45 million was paid on investment and savings policies.

In addition, in the second year since the freedom and choice pension reforms were introduced in April 2015, £5.7 billion was withdrawn from pension pots.

Huw Evans, ABI’s director general, said: “The industry makes a vital contribution to the UK economy as a world-leading sector. This is why the cross-party Treasury Select Committee recently called for it to be treated as a ‘priority sector’ in Brexit negotiations so UK firms can continue to serve our wide customer base in the EU. The sooner businesses have certainty on a constructive future relationship, the better.”

The ABI recently received Bristol-based online investment provider and Financial Planning firm Hargreaves Lansdown as its first platform provider member.