A survey of the motor insurance industry has found that the increasing amount of litigation and rising claims costs are worrying brokers and insurers.
The RAC motor insurance survey 2004 identified that 36% of both brokers and insurers are concerned about the increased amount of legal action, while 63% of brokers said that costs per claim have risen between 10% and 25% in the past five years.
In addition, just over 50% of those surveyed think the cost per claim will increase by up to 25% in the coming five years, with 25% of brokers and 69% of insurers holding this view.
Phil Manchester, head of processing and product development at RAC Claims Services, said: "It is no surprise to find the results over the current litigious environment and rising costs of claims.
"The interesting bit is the number of people who think the number is going to rise."
The claims directors of the top 20 insurers and brokers were questioned for the survey.