General Insurance Article - 10% year on year increase in motor insurance premiums


The average price paid for private comprehensive motor insurance in the second quarter of 2016 rose slightly by 1% since the previous quarter, but increased by 10% on the same period last year according to the ABI’s latest Quarterly Average Private Comprehensive Motor Insurance Premium Tracker published today.

 These figures illustrate the ongoing pressure on premiums driven by increases in Insurance Premium Tax (IPT) and the rising costs of personal injury claims.

 The Tracker shows that:

 - The average premium paid in the second quarter of 2016 was £434, up £5 (1%) on the previous quarter.

 - The average premium paid in the second quarter rose by 10% on the same period last year. This means that the average comprehensive motor insurance premium is £39 more expensive than a year ago.

 Rob Cummings, ABI’s Manager, General Insurance, said: “These continue to be tough times for motorists. Despite a highly competitive market enabling motorists to shop around for the best deal, cost pressures on premiums caused by the Government’s increases in Insurance Premium Tax and an increasing overall cost in lower value personal injury claims are feeding their way through into higher motor insurance premiums.

 “With a further increase in Insurance Premium Tax announced last October, it is imperative that the Government pushes ahead with proposed reforms to tackle the compensation culture by limiting compensation for low value whiplash claims, so that savings can be passed onto consumers through lower premiums”.

Back to Index


Similar News to this Story

Doubt that main political parties will reform social care
Research for Just Group’s Care Report 2019, the seventh in a series that examines the knowledge and attitudes of over-45s toward adult social care ref
IICF raises valuable funds for local communities
The Insurance Industry Charitable Foundation (IICF), the non-profit organisation helping charities advocating education and social mobility through gr
Hiscox launches free cyber exposure calculator
Hiscox has launched an innovative new Cyber Exposure Calculator, which is designed to help businesses estimate the potential financial impact they may

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.