This report provides a comprehensive analysis of claims costs in the UK general insurance market covering motor, property and liability insurance. The report also provides a detailed discussion on key claims management issues in the UK. It reviews historical claims costs and estimates the future size of the claims bill up to 2014, as well as discussing the drivers behind these forecasts.
Scope
- Detailed analysis of the claims cost efficiency for the 20 most efficient groups in the motor, property and liability insurance markets.
- Extensive claims costs data for the UK motor, property and liability insurance markets.
- A comprehensive analysis of the latest issues affecting claims management in the UK.
- Forecasts of net claims incurred for the motor, property and liability insurance markets until 2014.
Highlights of this title
- The overall cost of claims resulting from the major perils insured against by domestic property insurers decreased by 25.2%, to £2.6 billion, in 2008. The primary driver behind this fall was a significant decrease in weather-related claims.
- The ratio of total claims management costs to total net claims incurred rose by 0.2 percentage points, from 5.2% in 2007 to 5.4% in 2008, which was primarily due to a decrease in claims efficiency in the UK liability insurance market.
- The recession is likely to lead to an increase in property claims relating to theft and arson, placing an upward pressure on claims costs in the short term, while increases in rebuilding costs will increase property insurers claims costs in the long term.
Key reasons to purchase this title
- Benchmark your claims handling efficiency against your competitors.
- Understand the key drivers behind claims inflation in the UK property, liability and motor insurance markets.
- Gain an insight into the latest issues affecting claims management in the UK general insurance market.
Some Key Topics Covered:
- Market Issues
- Introduction
- Changing customer attitudes towards insurance fraud are driving an increase in fraudulent claims
- Fraudulent claims are estimated to have been valued at £730m in 2008
- Insurers have strengthened their existing counter fraud measures to combat fraudulent claims
- Credit hire costs and uninsured driving are increasing the level of claims costs in the motor insurance market
- Insurers will benefit from increasing the speed of the claims settlement process in order to minimize third party claims costs
- An increase in uninsured driving and fraud is placing pressure on UK motor insurers
- The government plans to implement continuous insurance enforcement
- Escape-of-water claims and the cost of commercial fires are driving up claims costs in the property insurance market
- The recession has increased the incidence of arson and fraudulent property
claims
- Motor claims costs are forecast to have a CAGR of 3.6% between 2009 and 2014, driven by rising fraud, personal injury and vehicle repair costs
- Fraud, personal injury and rising vehicle repair costs will place an upward pressure on motor claims costs
- Total motor claims costs will reach £10.5 billion, an increase of 3.6% per year between 2009 and 2014
- Increases in fraud and crime are expected to exert an upward pressure on property claims costs, which will grow to £5.8 billion by 2014
- Fraud, crime and an increase in rebuilding costs will exert an upward pressure on claims between 2009 and 2014
- Net property claims incurred are forecast to grow by a CAGR of 3.7% between 2009 and 2014
- Liability claims costs are expected to reach £3.5 billion by 2014 due to high
claims inflation
- Personal injury claims and fraudulent claims will exert an upward pressure on claims costs
- Net liability claims incurred are forecast to grow by a CAGR of 6.5% between 2009 and 2014
