U.K. auto insurance rates rise as large claims shrink

UK Car InsuranceThis year has shown a continuation of the increase in car insurance rates in the United Kingdom, as some motorists find themselves faced with premiums that are as much as 50 percent higher than they were in 2010.

Equally, according to the U.K. Motor Market Review, which is performed annually by top reinsurance advisor (and part of global insurance broker, Willis Group Holdings) Willis Re, the number and frequency of large claims from serious injuries and deaths resulting from crashes in the country have fallen by a notable 10 percent (year-on-year), when compared to the premium income.

This fourth annual review by Willis Re – which involved the participation of more than half of the British auto insurance market – looked into the large motor claim patterns over the last year.

Executive director of Willis Re, Richard Bloss, discussed the findings of the report, saying that the auto marketplace – both in terms of insurance and reinsurance – is currently in a state of flux. He said that though there have been substantial increases in the premiums that individuals are paying for their coverage, there has equally been “a gradual but clearly discernible pattern of reducing numbers of deaths and serious injuries on the UK roads.”

He also explained that among the large claims that continue to occur, there is an average increase in cost of 9 percent over the cost of the serious claims in 2010. Furthermore, many of these large claims are being settled as ongoing payments that continue throughout the life of the policyholder, which significantly raises the time span of the cost.

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