Insurance to remain competitive, according to ABI

by Richard Kilner

Story link: Insurance to remain competitive, according to ABI

Despite rising claims costs the insurance industry is set to remain competitive, according to the Association of British Insurers (ABI).

Speaking to BBC Radio Five Live, the ABI’s Malcolm Tarling has stated that over the last eight years the cost of accidental damage claims has risen by 67%, and boidly injury claims by 75%.

The increasing cost of claims has led to a domino-effect of increasing costs, such as lawyer’s fees.

These in turn get added onto premiums, costing the consumers themselves more money.

However, Tarling has stated his belief that the highly competitive nature of the British insurance industry will defy the spiralling costs and force prices to remain low.

He went on to say that the trend of rising premiums would probably continue, but that costs to the consumer would not become excessive.