Drivers pay cost of Ogden delays
Motor premiums could rise following the government’s delay to provide feedback from its Ogden consultation.
Premiums rose steeply in the first half of the year and are expected to continue rising after this delay from the Ministry of Justice.
This is according to Fitch’s UK Non-Life Company Market Insurance report.
It said, ‘Motor insurance premiums rose significantly in [the first six months of the year] to reflect the substantially higher costs of bodily injury claims as a result of the Ogden discount rate change. In the absence of further Ogden discount rate reforms, we believe premiums will continue to rise, to reflect higher claims inflation and prospective higher prices of reinsurance protection, as most insurers will renew their motor excess of loss reinsurance in January 2018.’