On average, the industry pays out £9.8 million every day to households and £22.4 million per day to motorists. As traditional buffers of easy credit and savings are eroded, an insurance policy can be the last line of defence.
Yet the industry is under pressure. With consumers feeling the chill wind of austerity, the temptation to convert monthly premiums into a lump sum payment can be too much. Last year, fraudulent activity surged 23%, with fraud accounting for 11 in every 10 000 applications