Quantcast
Menu
Save, make, understand money

Insurance

Insurance claim success rates published for first time

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
26/01/2016

The average pay-out for a motor claim is £2,160 and 99% of all insurance claims are successful, according to new data on success rates published for the first time today.

Analysis by the Association of British Insurers (ABI) shows that of the 6.9 million claims handled during 2013 and 2014, nearly four out of five (79%) home insurance policyholders who claimed received a pay-out.

The average pay-out was £2,520, compared to the current annual combined buildings and contents premium of £290.

The main reasons for a claim failing were wear and tear or damage caused by a lack of maintenance which isn’t insurable, the claim value being below the policy excess and customers not having the right cover.

Of the travel claims handled, nearly nine in ten customers (87%) received a pay-out, with an average figure of £884.

Declined claims were mainly down to cancellation falling outside the scope of cover, failure to declare a pre-existing medical condition that led to a claim and because of the claim being below the policy excess.

The success rate analysis, published for the first time today comes as part of the ABI’s programme to improve customer trust, to help policy holders understand what they’re covered for, reduce the level of declined claims and to increase transparency.

‘Contrary to popular belief, insurers want to pay honest claims’

Huw Evans, ABI’s director general, said: “As insurers, we want our customers to have greater trust in us to pay claims when life gets difficult. We cannot earn that trust without being more transparent about how many claims are paid and why a minority of claims are usually declined. That is why the figures we are publishing today are so important.

“Contrary to popular belief, insurers want to pay honest claims. It helps nobody when customers have bought the wrong product or have not disclosed important information. Buying insurance should never just be about getting the cheapest price in the quickest time possible, it should be about ensuring you have the right product for your hour of need.”

Insurer Axa has also today published its own set of claim results for 12 months ending 2015 which show that 99.8% of motor, 83.7% of home insurance and 88.5% of travel claims were paid.

The average values of each were £3,090, £3,019 and £644 respectively.

[article_related_posts]