Report shows decrease in motor cost claims

The second report on Private Motor Insurance Statistics has showed that claim costs per motor insurance policy in 2003 have fallen significantly.

The report was published on Thursday, July 6th, by the Financial Regulator. The decrease was as a result of an improving accident frequency.

For Comprehensive cover, claims fell from 11 accidents per 100 policies in 1997 to six accidents per 100 in 2003. Third party fire and theft cover fell from eight accidents per 100 policies in 1999 to four accidents per 100 in 2003.

Although the statistics are outdated, they show that conditions have been changing for the better. The conditions have led to a major drop in premiums over the last three years.

The report shows that premium income per policy increased by 45% for comprehensive cover and by over 70% for third party fire and theft cover between 1997 and 2002. Much of the increase happened in 2002 when average premiums grew by 14% and 30%.

The information in 2003 showed a number of differences. The average earned premium for comprehensive cover showed an increase of just 2%. Meanwhile third party fire and theft cover fell by 1%.