Insurance premiums set to rise due to increased traffic accident claims
According to new figures released by the Institute and Faculty of Actuaries, motor insurance premiums are likely to rise in the near future due to an 18% increase in personal injury claims.
Despite an 11% fall in road accidents in 2011, the number of claims for personal injuries has risen by nearly a fifth. This is the highest ever percentage year-on-year rise in claims and has led to a predicted £400 million payout by the insurance industry.
Earlier this year the insurance industry created a scheme in partnership with the DVLA in an attempt to reduce personal injury related insurance fraud, which should come into effect in 2014.
A spokesman for the working party which produced the report said: "The increase in costs to insurers because of the rise in bodily-injury claims is likely to result in a rise in motor insurance premiums for drivers.”
However he also went on to say: "We expect to see legislation coming soon which will affect the way in which claims management companies do business... It is possible this is the last hurrah.”