Casualty claims | Insurance
Claims inflation: Catastrophic Injury & Large Loss
UK & Europe
A perfect storm of issues is driving the cost of credit hire claims to increase exponentially in relation to non-fault claims.
Vehicles have become more sophisticated, making them more expensive and time-consuming to repair. Society has moved from a repair to a replace mentality. Supply and cost of parts have been impacted by Brexit, Covid-19, the Ukraine war, the cost of living crisis and the energy crisis. Pandemic lockdowns and the subsequent shift towards working from home have reduced the number of cars on the roads, and therefore there have been fewer accidents. This has dented credit hire companies’ revenues and put them under pressure to find ways to revitalise their income streams.
Given this combination of factors, insurers need to find smart strategies to take greater control of the claims process and mitigate indemnity costs. Here, we look at some of these issues and their implications in more detail and put forward some potential solutions: