British car insurance premiums fall by 1% in the first quarter of 2019: survey

(Reuters) – A survey found that the cost of a full auto insurance policy fell by 1% in Britain in the first quarter, driven by uncertainty surrounding the rate used to calculate victim compensation and the draft law on civil liability.

The average premium for a comprehensive insurance policy now stands at 762 pounds ($ 997.08), according to the latest Confused.com price comparison site index from insurance consulting firm Willis Towers Watson. .

"Fluctuations in premium levels over the past few quarters reflect the continuing uncertainty surrounding the impact of the tort bill and the expected Ogden rate adjustment," said Stephen Jones. , UK head of property and casualty insurance at Willis Towers Watson.

Prices in 2018 were also pushed down by changes to the Ogden rate, used to calculate personal injury compensation, and the Civil Liability Bill, which includes reforms that could reduce the number of claims for compensation for cervical trauma.

Whiplash is a form of neck injury caused by a sudden jolt that tilts your head back, but insurers say that many claims for compensation are fraudulent.

The report, based on price data compiled from anonymous data from all inquiries submitted on Admiral Group's Confused.com, said that 2019 may experience further price swings as Bill Responsible Civil and Ogden go add to the rising costs of urgent repairs.

"With the rising cost of claims and the introduction of new technologies into the auto market, we can expect premiums to rise," said Steve Fletcher, Data Insight Manager at Confused.com.

Companies such as Admiral, RSA Insurance Group Plc, Direct Insurance Group Plc, Esure and Hastings Group Holdings Plc provide auto insurance to England's highly competitive sector.

(Chart: British auto insurers hit by falling prices, regulation – tmsnrt.rs/2VEqFE5)