Almost 30 million protection policies were in force last year with consumers receiving over £32m per day in benefits, according to the ABI.
This included around £6.2bn (£17m per day) paid out in death and disability benefits.
However life premiums decreased by 1% and pension premiums decreased by 8%, to a combined value of £110bn in 2010, a 7% decrease over 2009.
The fall in life premium income continued a ten year trend that has seen it halve from around £40bn in 2000 to just £20bn in 2010 (see dark blue sectors on chart).
This low is even more remarkable given the peak in 2007 at around £50bn, but highlighted both the falling demand and significant price cutting witnessed in the market since the banking crisis broke.
The ABI also revealed that its current priorities included supporting radical reform of long-term care (LTC) and promoting private sector sharing of state protection risks.
The insurers' trade body published the figures as part of its Key Facts 2011 document.
It found that three-quarters (76%) of life and pensions business was sold through IFAs, 13% through non-whole of market advisers and the remaining 11% without advice.
Overall approximately 8.5m households benefitted from various long-term insurance products.
Other priorities for the organisation include:
• Developing a simplified advice model for consumers who are unable or unwilling to pay for full financial advice, helping them to access suitable services and products that will meet their needs, especially after the implementation of the Retail Distribution Review reforms in 2012,
• Lead the debate and achieve an appropriate outcome on the treatment of insurance as the UK and EU reshape the regulatory architecture following the financial crisis, most importantly in relation to the Solvency II Directive on capital,
• Maintain pressure for a stable, competitive tax regime which helps to promote the UK as an attractive place to do business and maintains the place of the UK as a leading financial centre.
