Insurance payouts

[chr15b]

May have changed a little in the last three years, but for many years i've read the same thing on here (and elsewhere) over and over that for every £1 an insurer takes in premiums they pay out £1.xx in claimes usually followed up with - they make their profit from investments.

Just read this - should prove a debate starter


in June 08, after a 15 month investigation into PPI, the Competition Commission found the following average payouts:

* Car Insurance: 78%
* Home Insurance: 54%
* Mortgage PPI: 28%
* Personal Loan PPI: 15%
* Credit Card PPI: 11%

Simply put, this means ...

For every £100 insurers take on car insurance, they pay £78, on loan PPI they pay out just £15, meaning it is HUGELY profitable.

[ikarl]

that is actually quite interesting

Karl

[Deva Link]

I used to work for quite a large corporation and I remember there was a kerfuffle (stroppy memos about trying not to crash so much etc) one year when our car insurance claims went over 80% of the premium paid.


On the list, wonder what the figures for travel and pet insurance would be?

[Noger]

chr15b said:

Simply put, this means ...

For every £100 insurers take on car insurance, they pay £78 in claims

And spend £27 on costs (staff, commission, computer system, phone bills, rent, hugely expensive consultants ...)
And give the MIB £3 for uninsured "scum"
And pay the government £5