Association of British Insurers

Insurers paid out a record £3.2 billion to support motor insurance customers in Q2 2026, according to the latest data from the ABI.1 This was 5% higher than the previous quarter, and 7% more than the same period last year.2 The average claim payout increased to £4,900, up 4% on the previous quarter, reflecting continued pressure from rising repair costs.

With a major incident in Suffolk declared following a wildfire which broke out on Dunwich Heath, and a number of additional active wildfires across the UK, the ABI shares advice for anyone affected. Louise Clark, General Insurance Policy Manager at the ABI, said: “With a major incident declared in Suffolk, people are understandably concerned for themselves and their property. It’s vital to put safety first and follow the advice of local authorities and emergency services.

As wildfires continue to spread across France and Spain, the ABI is urging holidaymakers to play close attention to local advice and updates from the Foreign, Commonwealth and Development Office (FCDO), and check their travel insurance policies. Wildfires across France and Spain have continued to cause significant disruption during the peak travel season, with mass-evacuations in affected areas.

We’re proud of the role our sector plays in supporting growth across the UK. The insurance and long-term savings industry contributes to building and maintaining vital infrastructure and supporting local communities. Annuity providers committed to invest £100 billion in UK primary productive assets over ten years.

The ABI has urged the Pensions Commission to set out a clear roadmap for gradually increasing automatic enrolment (AE) pension contributions from 8% to 12% by the end of the 2030s. Given the financial pressures facing households, workers and employers, the trade body says a carefully phased approach will be needed to build better retirement outcomes and give businesses and savers time to plan and adjust.

One in three pensioner households could be renting by 2044 according to the ABI’s latest report, Pensions Adequacy: Housing, Households and Auto-Enrolment. The research finds that nearly two million more people are expected to retire without owning their home, marking a major shift in how future generations will experience retirement.

New figures from the ABI and Group Risk Development (GRiD) reveal that insurers paid out £7.84 billion in individual and group protection claims across 2025 – equivalent to £21.5 million every day. The data highlights the vital financial support protection products continue to provide to those experiencing bereavement, illness and injury.

The ABI has strengthened its leadership with the appointment of two new Board members, the OneFamily Group’s Jim Islam and Just Group’s Pretty Sagoo. Both have joined with immediate effect. The Board provides oversight of major cross-cutting political, regulatory and consumer issues and leads sector-wide strategic discussions that shape the ABI’s priorities and business plan.

ARAG, a leading provider of legal expenses insurance and assistance solutions, has joined the ABI, strengthening the collective voice of the UK’s world-class insurance sector. ARAG offers an extensive range of before-the-event and after-the-event legal expenses insurance products through business partners including insurers, brokers, MGAs and other intermediaries.

The Pensions Commission has now published its Interim Report, highlighting three main findings: private pensions are key to securing adequacy; the state pension has reached the proportion of average earnings envisaged by the original Turner Commission; and decumulation needs strong well-designed defaults. "The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.