The number of casualties is falling along with the number of accidents, while the number of motor personal injury claims is increasing.
Motor insurance fraud carries the highest costs, and therefore continues to receive the most attention from anti-fraud initiatives.Escape of water in commercial property insurance has been the fastest growing cause out of the five major perils.
This report provides a comprehensive overview and analysis of claims costs in the UK general insurance, including motor, property and liability. The report looks at the current issues in the market, providing historical data on claims costs and forecasts for up to 2015.
UK General Insurance Claims Management Report
Published: January 2012
No. of Pages: 61
Price: Single User License – US$4495 Corporate User License – US$11238
Features and benefits
• Find out about the current level of claims costs and types of claims in motor, property and liability insurance.
• Benchmark your claims handling efficiency against the top 20 most efficient motor, liability and property claims handlers.
• Gain insight into the future level of claims costs.
Major points covered in Table of Contents of this report include:
OVERVIEW
Catalyst
Summary
EXECUTIVE SUMMARY
Motor claims have been rising consistently over recent years
Despite declining claims frequency, motor insurance claims costs continue to rise
One of the key issues in motor personal injury is whiplash, the most frequent type of bodily injury sustained
Lord Justice Jackson's review of civil litigation costs
The overall costs of commercial property claims continues to decline
Commercial escape of water recorded another year of increased claims costs
Weather-related claims costs are on the increase again
Domestic burglaries are on the increase again
The gross value of employers' liability claims decreased in 2010
Gross claims amounted to £967m in 2010
Claims handling efficiency improved in 2010
The total claims management cost ratio improved from 5.1% in 2009 to 4.8% in 2010
CLAIMS COST ANALYSIS
Introduction
Motor insurance claims costs
Motor claims continued to increase in 2010
Despite declining claims frequency, motor insurance claims costs continue to rise
The total number of registered vehicles continues to rise, while road traffic accidents are in decline
The number of casualties is falling along with the number of accidents, while motor personal injury claims are increasing
One of the key issues in motor personal injury is whiplash, the most frequent type of bodily injury sustained
Claims inflation is showing a slowdown for the first time after a long period of consistent increases
Motor bodily injury claims are the most expensive to settle, followed by theft claims
Lord Justice Jackson's review of civil litigation costs
Fraud in personal motor claims is more prevalent than in commercial motor
Uninsured driving continues to decline
Property insurance claims costs
After a peak in 2007, commercial insurance claims costs continue to go down
Commercial escape of water recorded another year of increased claims costs
Business interruption following fire damage increased significantly in 2010
Claims inflation for commercial property theft claims has slowed, while the number of claims continues to decline
Calls for changes to scrap metal sales due to increases in metal theft
Total domestic property insurance claims costs decreased by 7% in 2010
The issue of flood cover for high-risk properties became the subject of heated debates
Weather-related claims costs are on the increase again
The number of household property claims continues to fall
Rebuilding costs increased again in 2010 and will potentially increase claims inflation
Domestic burglaries are on the increase again
Employers' liability claims costs
Employers' liability gross claims amounted to £967m in 2010
Accidental injury claims continue to account for the vast majority of claims
The propensity of workplace injuries is decreasing
The total number of injuries decreased in 2010/11
COMPETITIVE DYNAMICS
Introduction
Claims handling efficiency improved in 2010
The total claims management cost ratio improved from 5.1% in 2009 to 4.8% in 2010
Efficiency in the liability market decreased by 0.3 percentage points
The motor claims management efficiency ratio improved by 0.4 percentage points between 2009 and 2010
Commercial motor improved by 0.9 percentage points
The total claims management efficiency ratio in property recorded a 0.5 percentage point improvement
Household insurance claims handling efficiency improved by 0.8 percentage points
The top 20 most efficient motor claims insurers
Brit Insurance and Cornish Mutual were the most efficient claims handlers in motor insurance, followed by Ageas
Brit Insurance and Cornish Mutual were also the most efficient in personal and commercial motor
The top 20 most efficient property claims insurers
Brit Insurance and AIG had the best efficiency ratio in 2010
Brit Insurance was also the most efficient claims insurer in household and commercial property insurance
The top 20 most efficient liability claims insurers
The top 20 most efficient liability claims insures improved their claims ratio by 1.1 percentage points
FUTURE DECODED
Introduction
Motor claims costs will continue to increase in the near future
Motor claims will continue to increase, albeit at a slower pace
Property claims costs will continue to remain stable
Total property claims will grow at a CAGR of 2.3% between 2010 and 2015
Claims costs inflation is forecast to rise steadily over the forecast period
Employers' liability claims costs
Legislative outcomes will have an impact on the market over the forecast period
Employers' liability claims costs are likely to increase slightly
Greater market consolidation as a result of the new alternative business structure initiative
APPENDIX
List of Tables
List of Figures
Explore Comprehensive list of Tables & Figures available in the report @ http://www.reportsnreports.com/reports/145399-claims-management-in-uk-general-insurance-2011.html.
