General Insurance Article - Motor insurers payouts up 14 percent over the last year


Motor insurers paid out £2.4 billion in motor claims in the first quarter of this year, up 14% on the same quarter last year according to our latest data. This was the highest quarterly payout since we started collecting data back in 2013.

 ABI data shows that between 1 January and 31 March 2023:

 In total insurers paid out £2.4 billon in all motor insurance claims –theft, vehicle repairs, replacement vehicles, personal injury. This was up 11% on the previous quarter, and a rise of 14% on Q1 2022. The overall number of claims settled, at 599,000, was also up 14% on the same quarter 2022.

 The costs of vehicle repairs leapt by 33% over the year since Q1 2022 to £1.5 billion, the highest figure since ABI started collecting this data back in 2013. This reflects rising costs, including energy inflation, and more expensive repairs.

 The costs of providing replacement cars while vehicles are being repaired jumped 29% in the last year since Q1 2022. This reflects longer average repair times, meaning that these vehicles are supplied for longer.

 Payouts for vehicle theft, at £152 million, rose by 29% since Q1 2022. This in part reflects increases in the average price of second-hand cars, which have risen by 30% in three years (source: Auto Trader).

 In addition, insurers paid out £642 million in respect of personal injury claims in the first quarter of this year, up 2% on the previous quarter. In the year ending Q1 2023, payments dipped by 11%. Early indications are that the whiplash reforms introduced in 2021 to create a simplified, fairer, more efficient, and cost-effective compensation system are having an impact.

 Laura Hughes, ABI’s Manager, General Insurance, said: “Motor insurers continue to deliver when motorists and personal injury claimants need them the most. Like most other business sectors, motor insurers face sustained cost pressures which they are finding increasingly challenging to absorb. Despite this they are doing all they can to ensure competitively priced motor insurance, as well as offering the best possible claims service.”

 Our recently produced consumer information here sets out the range of factors involved in the pricing of motor insurance.  

Back to Index


Similar News to this Story

US insurers leading the AI arms race
New research from leading Insurtech provider, hyperexponential (hx), reveals that while insurers are energised by the potential of artificial intellig
Hurricanes and earthquakes could lead to USD300bn losses
Following the long-term annual growth trend of 5–7%, global insured natural catastrophe losses may reach USD 145 billion in 2025, mainly driven by sec
FCA set to launch live AI testing service
The FCA is seeking views from firms about how its live AI testing service can help them to deploy safe and responsible AI, which will benefit UK consu

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.