Transport Committee Inquiry - cost of motor insurance. Consultation response
Motor insurance offers cover to both personal and commercial customers in the UK and is compulsory in respect of third party property damage and third party bodily injury. Insurers collect of the order of £10bn in premiums each year. The Actuarial Profession commissioned a working party to investigate third party motor insurance based on some worrying inflationary trends being reported by individual insurers. The working party reported its findings at the UK Actuarial Profession’s annual General Insurance conference (GIRO) in October 2010. These findings were based on data it collected from 89% of the UK regulated motor market. In addition the working party also carried out research on international trends and the link between the legal framework and claim inflation.