The Association of British Insurers (ABI) has revealed that UK insurers are paying out almost £200m a day.
The figures include daily payouts of £19m for motor insurance policies, and £9m relating to home insurance coverage.
Damage to business premises has a daily cost of £4m, with travel and medical insurance costing £1m and £7m respectively.
Pension annuity payments are far costlier, at £33m per day, and a similar sum (£37m) is paid out to dependents to help them cope with the loss of loved ones.
However, the largest single category is endowment policies and investment bonds, which pay out £54m a day.
Insurers also manage investments worth a total of £1.8 trillion, more than a quarter of the country’s net worth, and the insurance sector paid taxes of £10.4bn in 2011.
ABI Director General Otto Thoresen said that the UK insurance market was the largest in Europe and the third largest globally, but warned that, whilst insurers had weathered the financial crisis well, there was much to do.