Despite significant regulatory changes to the personal injury and civil litigation sector over the past few years - many of which significantly affect a individual’s ability to obtain professional legal representation and receive the correct level of compensation following an accident that wasn’t their fault – it seems that the insurance industry’s promises of subsequent motor insurance premium reductions may well not materialise.
A recent survey by telematics company The Floow has revealed that eight out of ten insurance industry senior executives predict that motor insurance premiums will rise in the next two years, with just under half predicting rises of 10% or more. The top three reasons given were rising cost of car repairs, claims fraud and higher frequency of claims, with premium increases being predicted for the over 25’s, taxi drivers, small business owners and businesses running fleets of company cars.
Such increases would be the opposite of what many large insurers and the government have been saying, such as with the new Civil Liability Bill, which the Minsitry of Justice (MOJ) have said will save motorists £35 per year as they clamp down further on the so called ‘compensation culture’.
Meanwhile, insurers continue to post healthy profits and strong returns for shareholders. At least someone is benefitting from the changes then!