It appears that claims figures are likely to return to pre‑Jackson levels, resulting in a return to loss for the motor insurance industry despite rising motor premiums.
Figures released by the AA in October showed a 1.2% increase in the average cost of an annual comprehensive car insurance premium. However this is thought insufficient to prevent an immediate return to loss, partly due to the 13% decrease in premiums during 2013.
Indeed the motor insurance industry only recorded a profit in 2013 due to a reduction in the number of claims, which allowed for reserves to be released.
Claim figures have not continued to fall in 2014 however and reached their highest level in 2014 since the peak between October 2012 and April 2013.
Insurers have called for further reform to the justice system, particularly the accreditation of medical experts.
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