The insurer expereinced a 3% increase in motor claims in 2014
Rising claims volumes are pushing up motor premiums, according to Admiral chief operating officer David Stevens.
Speaking after the announcement of the insurer’s financial results, Stevens said that premiums had returned to growth towards the end of 2014 as a result of an increase in vehicle miles being driven.
“We are coming towards the end of the longest ever period of price reductions in the UK market,” he said. “At the end of last year, prices were down about 10% from a year ago, and we would anticipate that that will partially reverse during the course of 2015.
“The more buoyant economic situation and cheaper petrol are leading to people driving more and more and we are having more accidents as a result.”
Stevens added that Admiral had experienced a 3% increase in claims over 2014 compared to the previous year, and that he expected this to continue into 2015.
“As people get more used to cheaper petrol and maybe switch from public transport back to their cars, we are anticipating that 2015 will see a further increase in claims frequency,” he said.