Insurance claims peak in winter weather

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Insurance claims peak in winter weather

Fri 12th Mar 2010

Steve Foulsham, technical services manager for the British Insurance Brokers' Association, said the extreme weather had particularly affected households and motoring and this could cause rates to become more expensive.

He added: "Insurers will be looking at their bottom line in terms of underwriting performance and with the sheer number and cost of these claims we could well see rates rising in those areas."

The Association of British Insurers revealed that £395 million was paid to insured motorists while £255 million went to homeowners and business customers as a result of property damage sustained during the winter.

According to Consumer Intelligence, retail price index measured by the Office for National Statistics calculated the average premium to now stand at £564.69, which is a 19.6 per cent increase since January last year,.

The independent data provider believes the premium increases are mainly due to the rising cost of personal injury claims and fraud.

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