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Insurers pass acid test as few claims left unpaid

Insurers pass acid test as few claims left unpaid

Insurers pass acid test as few claims left unpaid The number of successful personal lines insurance claims has increased over the last two years along with the level of average pay-outs, according to the Association of British Insurers (ABI).
 
The ABI published figures on Wednesday showing pay-out rates for private motor, home and travel insurance claims made during 2014 and 2015, following an analysis of over seven million claims handled by 42 insurers.
 
Based on the ABI’s findings, about 6.7 million private motor, household and travel claims were successful, with total pay-outs of more than £15 billion.
 
For private motor, 99% of claims were successful, with an average pay-out of £2,347, up from £2,160 during the previous years.
 
Also, 84% of home insurance claims were successful, up by more than 5%. The average claim also increased from £2,519 to £2,627.
 
Meanwhile, 87% of customers claiming on their travel insurance received a pay-out. Claims included some very expensive medical bills, ABI noted, with some costing more than the price of the average UK house.
 
“Insurers know that paying a genuine claim is the acid test for most customers,” said ABI director general Huw Evans. “Being open and transparent about just how many claims get paid is vital to rebuilding trust and ensuring customers understand what their insurance policies cover.”
 
“Insurance customers should take confidence that the vast majority of all claims are paid, providing peace of mind and greater security to our millions of customers,” Evans added.
 
 
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