Misrepresentation, Non-Disclosure and Breach ... - Law Commission

Section 4 Baseline analysis of insurance markets and the extent of non-disclosure
The highest average household expenditure relates to the purchase of life
assurance at an average of £765 per household per annum, private medical
insurance at an average of £699 per household per annum, £535 per
household per annum on vehicle insurance, £434 on mortgage protection
products, and £200 and £166 on buildings and contents insurance
respectively.
Grossing some of these estimates by the number of households in the United
Kingdom, the fourth column provides an estimate of the total economy wide
expenditure on insurance products (in £ millions). This information is also
presented in Figure 1 below.
Figure 1: Total annualised expenditure on insurance products
£7,479,680
£2,192,320
£1,547,520
£3,133,728
£9,543,040
£3,095,040
£2,063,360
Buildings Insurance Contents Insurance Medical Insurance
Vehicle Insurance
‘Other’ Insurance
Mortgage Protection Life Assurance
Source 2005/2006 Expenditure and Food Survey, Office or National Statistics
In the final column of Table 7, we have also presented recent information
from the Association of British Insurers (ABI) on the relative size of the
various markets. This information is not directly comparable to the
information presented from the ONS Food and Expenditure Survey as the
categorizations of various insurance products is not equivalent; however it
does provide accurate information on the relative size of the particular
markets.
London Economics
June 2007 20