Claims inflation a ‘significant risk’

Ageas says it is ‘cautious’ about the motor insurance market going forward.

Speaking to Insurance Age, Ageas boss Andy Watson said claims inflation remains a very real risk for the company and it would be monitoring the situation closely between now and the end of the year.

He said, ‘We are a little cautious about motor going forward. We don’t think price rises in the second half [of the year] will be as strong as in the first half. In fact we are already seeing price rises slowing significantly. We’re always cautious about claims inflation, claims costs are increasing and claims inflation remains a significant risk for us.’

Ageas reported a COR of 107.7% for the first half of 2016, up from 97.9% for the same period last year.

Andy said, ‘If you strip out commercial lines rather than have them combined with special risks then our COR for commercial lines is 96%.’