Launch Of Sainsburys Home Insurance Index Reveals Dramatic Drop in Volume and Value of Claims

    LONDON, ENGLAND, September 13, 2009 /24-7PressRelease/ -- The launch of the Sainsbury's Home Insurance Claims Index, which tracks the volume and value of claims on a six monthly basis, suggests that insurers received a staggering 527,000 Home Insurance claims during the first half of 2008, but this fell to 373,000 for the same period in 2009. Furthermore, the average size of claim during these two periods was GBP918 and GBP735 respectively.

The Index reveals that the main reason for the huge difference in the number and value of Home Insurance claims during these two periods was that last year there was a lot more damage caused by storms. Sainsbury's home insurance estimates that there were around 166% more Home Insurance claims linked to this category during the first half of 2008 than there were during the same period this year.

What is more, the average claim for storm damage in March 2008, a particularly severe month, was GBP460. This fell to just GBP93 in March this year, a drop of around 80%.

Lucy Hunter, Sainsbury's home insurance manager said: "Our index shows the huge impact adverse weather conditions can have on the number and value of Home Insurance claims made. The first quarter of 2008 brought particularly severe conditions, and storm damage in that quarter accounted for 21.8% of all claims made. For the six months overall, storm damage was still the second most prevalent claim in 2008, accounting for 15.9% of claims made. In the first half of 2009 it only accounted for 8.5% of claims.

The Index reveals that for the first half of 2008, the five most common reasons for making a Home Insurance claim were water escaping; storms; accidental damage; theft and accidental damage to TVs, video audio and computers.

The top five reasons for making a Home Insurance claim during the first quarter of 2009 were water escaping; accidental damage; theft; accidental damage to computers, television, video, and audio equipment; and storms.

About Sainsbury's home insurance:
As well as being competitively priced, the bank also offers an extensive range of cover and benefits. This includes:
• Unlimited buildings cover
• Unlike some home insurers, Sainsbury's Bank does not apply charges for customers paying their premiums by direct debit
• Maximum no-claims discount of up to 30%
• No-claims discount protection(3)
• Cover for accidental damage - even by pets(3)
To find out more about Sainsbury's Bank home insurance, call 0800 731 7978 or log onto www.sainsburysbank.co.uk

Offer is available to new customers only. Sainsbury's Finance has been awarded Best Direct Home Insurance Provider, Your Money 2009.
The Index is based on the number of home insurance claims received by Sainsbury's Finance and its market share.
This is optional and requires an additional premium.

Sainsbury's Finance:
To view our latest press releases and product information, please visit the Sainsbury's Finance online media centre at www.sainsburysfinance.co.uk/media.

Sainsbury's Finance offers a range of quality, competitively priced, award-winning products. It opened for business on 19th February 1997 and was the UK's first supermarket bank. It is a 50:50 joint venture with Sainsbury's and Lloyds Banking Group.

Sainsbury's Finance recent awards include Best Online Credit Card Provider / Best Direct Home Insurance Provider, Your Money 2009.

Sainsbury's Finance offers the following products: credit cards, loans, personal loans, savings account, pet insurance, life insurance, home insurance, car insurance.

For further information and general Sainsbury's Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk

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