Motor claims inflation set to keep rising

UK motor claims inflation is set to continue rising, according to analysts at J.P. Morgan.

They say this is because of continued supply chain issues coupled with wider inflationary pressures.

It revealed that UK motor insurer Sabre said claims inflation had continued throughout the year, rising from eight per cent in the first quarter of 2021 to 10% in the first three months of 2022. It has now risen to 12%, representing a 50% increase in the last six months alone.

J.P. Morgan said: “Prices year to date in UK motor insurance have disappointed. According to, motor prices were up two per cent in the first quarter of 2022.

“In order to get more positive on the UK motor insurers, there needs to be a material correction in pricing or claims inflation needs to reduce in order to allow the insurers to make better margins.

“On the claims inflation side, we believe that this is unlikely and on pricing, we think that a correction is unlikely at least until late in the second half of 2023.”