In a week when some of the largest motor insurers in the UK market have confirmed soaring profits despite their claims that the compensation culture is out of control and causing inflated insurance premiums, let’s have a quick look at the actual data based on this week’s car insurance price index, the statistics from the government’s compensation recovery unit and industry statistics on vehicle numbers in the UK.
A quick breakdown:
- Motor injury claims are down by around 50,000 per year since 2011/12
- Cars on the road up by at least 1.2 million since 2011/12
- Money recovered by government (CRU’s) is down by £11 million a year since 2011/12 (over 25%)
- Motor premiums up by 43% since 2014/15
So, claims per head are down, the number of claims in total is down, the cost of claims is down, and the money claimed back on behalf of the state is down. Yet despite this, motor insurance premiums are up and motor insurer profits are up. Hmmmmm????
Therefore, if one was looking to effect change to try and bring motor premiums back down, in what/whose direction should those changes be aimed?
You got it, those pesky genuine claimants injured by the negligence of other drivers. They should no longer get any legal costs to use a lawyer to help them with their ‘unnecessary’ claims for just £5,000 and those who ‘only’ suffer whiplash injuries should be restricted to fixed compensation. £400 for a 6-month injury should shut them up. That will definitely result in lower insurance premiums! And as for fraudulent claims, there’s no need to do anything about those (which are less than 1% of all motor claims!). If we get genuine claims down significantly then it won’t be such a hassle for the insurers to pay off the odd dodgy claim.