While motor insurers have been dealing with a competitive market for a number of years, current pricing trends mean that it is more important than ever to minimize claims costs. This brief outlines how claims performed in 2013, which perils contributed the most to the overall costs, and the implications for motor insurers.
Understand how claims performed in 2013 within both the personal and commercial motor markets.
Develop strategies to reduce your exposure to the high-cost perils.
How did motor claims perform in 2013?
Is claims frequency decreasing?
What are the main types of claim?
Similar to private cars, the claims frequency for motorcycles increased in 2013 to 4.9%, bucking the long-term declining trend.
Claims frequency is a lot higher for commercial vehicles than personal vehicles; however, in the last 10 years it has dropped from a high of 32.5% in 2004 to 19.4% in 2013.
Both property damage and theft saw growth in the average claim cost increasing 6.0% and 10.8% respectively since 2012.