IFoA response to Transport Select Committee report released today

"If measures to reduce fraud and exaggeration were successful, these could lead to reductions in insurance claim costs of 3–15%.  However these decreases could soon be offset by inflation in compensation for other types of claim, which is currently averaging 3– 7% per annum.”

"And given that car insurance premiums have already reduced by 15% in the last year (from the latest Confused.com/Towers<http://Confused.com/Towers> Watson index ), it may be that insurers have already effectively anticipated all of these benefits - and that there is no more to come."

~ENDS~

For further comment, or an in-depth summary of the findings of the recent IFoA report looking at third party injury (TPI) and third party damage (TPD) UK motor insurance claims data, a jpeg image of David Brown or to answer any questions that you may have please contact the IFoA

About the Institute and Faculty of Actuaries

1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues
2. Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
3. Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.
4. The IFoA is available to provide independent expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.