Insurance companies are paying their bills nearly two days quicker on average than a year ago, according to a new Experian survey.

The company’s Late Payment Index for the second quarter of 2011 shows that the industry is paying its bills 18.37 days on average after term, compared to 20.10 during the same three month period in 2010.

The index also shows what Experian describes as a “tiny improvement” from the first quarter of 2011, when bills were paid an average of 18.69 days late.

In addition, insurance is one of just five sectors that is now outperforming its full year average.

Experian UK & Ireland head of payment performance Jason Mills said: “It is encouraging to see that for many firms, regardless of size, late payments did not slide further in Q2 2011. However, it is still critical, especially for small businesses, to keep a close watch on cashflow.

“Being able to predict and control your financial situation can prepare you for any shortfalls caused by late payments, while good forward planning can also help you spot opportunities for debt reduction.”