Rise in Commercial Motor claims costs

9th February 2012

 

Whilst the average commercial motor insurance premium has increased substantially over the past 5 years, the cost of claims in the UK is rising increasingly and these costs have to be met by insurers.

 

The Association of British Insurers (ABI) estimate that 1,562 whiplash claims are made every day in the UK, costing insurers in excess of £2 billion.
 
The compensation system employed in the UK has major implications for UK insurers. For every £1 paid out in compensation, another 87p is paid in Legal costs. British drivers pay £2.7million each day to lawyers.
 
The Jelf Group have been working with insurers who provide commercial motor cover for their clients, to cap increases to a level below the national average, at renewal. This is done by focussing on the profitability of their account rather than the national claims loss ratio figures.To speak to a member of our team please contact us.

 

 

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