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Non-life insurance industry claims costs growing

Written by Robert McHugh, on 25th Nov 2015. Posted in Financial

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The number of claims building up within the system is increasing for a number of insurers, as their claims are taking longer to settle fully across private motor and liability lines.
 
This is according to the Central Bank’s review of bodily injury claims and reserving data today. 
 
The Central Bank says research shows increases in the average cost per claim of approximately 8% in private motor, approximately 27% in employer liability and approximately 8% in public liability. This has been observed from year end 2012 to year end 2014.

Increases have been observed in private motor injury claims frequency from year end 2013 to year end 2014 in the range of 4% to 12%, with an average of 8.3%.

According to the Central Bank, "The number of claims building up within claims systems is increasing for a number of insurers, as their claims are taking longer to settle fully across private motor and liability lines.  The slowdown in settlement rates has been observed in some companies to a varying degree. 

"For some companies higher caseloads per handler have also been observed; and optimistic assumptions are being made in relation to the potential impact of Period Payment Orders by some companies and there is a wide variation in reserving methods applied."

Source: www.businessworld.ie 

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