Over the last year, everyone has seen a rise in the ‘cost of living’ as the Consumer Price Index (CPI) continues to increase. There are several factors that have led to this consequence, with most industries affected.
Put simply, claims inflation is the change in the average price of goods and materials, and services in relation to a portfolio of representative claims.
The SRIS Claims team has put together three of the main areas we believe might affect our clients the most. Below, you will be able to read through the reasons for claims inflation in Motor Fleet, Liability, and Property insurance and gain an understanding of how the current economic climate could affect you and your business.
With the average claim costing over £5,000, it is no wonder people are asking ‘why?’. In this article, the team talks about the specific elements across supply chains, conflict between countries, and the impact of the global COVID-19 pandemic that has amounted to claims inflation for Motor policies.
From the global pandemic, and new regulations because of Brexit, to climate change, if you’re curious about some of the biggest reasons driving claims prices upwards in Property insurance read our latest article.
When the cost of repairs, materials, and labour rise, so does the cost of third-party liability for property damage. Inflation also raises the cost of settlements and damages awarded in court cases.
SRIS Client Relationship Director - Motor, Robert Wright, comments “Early reporting is a must, and it will allow us to help you. After any incident, policyholders and drivers must respond quickly to requests for information. Having the right reporting processes in place to provide us with meaningful information in a timely manner is vital as this will allow us to ensure liability is quickly established.”
For more information on claims inflation and how this may impact you, please contact your Account Executive, or get in touch with our expert team.