Motor claims have increased by 30% in the last month, compared to the beginning of 2021, according to new data from LV= General Insurance (LV=GI).
The number of accidents has also risen, with a higher proportion taking place in car parks and on motorways than at any time since March last year.
Car park accidents were at their highest in May, nearly doubling the rate seen in January 2021 and higher than any month in 2019 apart from August.
Isobel Rafferty Insurance Times 2nd June 2021
Customers became used to reduced premiums over the last year as cars stayed on house drives and in garages during lockdowns. They will be resistant to increases as claims volumes continue to rise again compounded by the increasing cost of claims resulting from the increasing complexity of vehicles and ADAS systems.
And the rise of pay-as-you-go insurtechs is making an impact.
A rise in shared car ownership, COVID-19-inflicted changes to commuting, and the growth of the gig economy are opening up prodigious opportunities for a wave of insurance upstarts. These pay-as-you-go or on-demand insurtechs are quietly forging market share by tapping into the current demand for flexible insurance models.
"Zego, for example, which provides cover by the hour for drivers and riders contributing to the gig economy, now insures a third of the UK’s food delivery market and recently underwent a multi-million pound fundraise to fund its European expansion.
Cuvva, the first firm to provide hourly motor insurance in the UK, sells 4.5% of all motor insurance policies in the UK by volume, according to industry figures."
John Reynolds Fintech Times May 26th 2021
Time to ramp up claims transformation and innovation plans as customers demand more self-service virtual interaction, competition increases and vendors push the benefits of 'Virtual Claims Technology". Backed, of course, by human claims adjusters when needed.
Further Reading
AI Comes to Car Repair, and Body Shop Owners Aren’t Happy
Pay-as-You-Go Insurtechs Riding the Wave of Societal Changes
Car manufacturers or traditional insurance carriers. Who will win the tech race?
Martin Milliner, claims director at LV=GI, said: “In the last few weeks we’ve seen horrendous weather, more cars on the road and people getting used to driving again, and those three factors have clearly led to more accidents. “Some people are getting back behind the wheel consistently for the first time in a while, so it’s really important drivers take their time getting used to the busier roads and don’t rush when parking or doing complex manoeuvres.
unknownx500
