Covid-19 claims inflation expected for 2020 H2, says Hastings’s Worth

car insurance (6)

The firm’s group chief financial officer explained that increased claims severity seen in H1 could continue due to the national uncertainty surrounding the coronavirus pandemic

Claims inflation connected to the ongoing Covid-19 pandemic could filter into insurers’ 2020 H2 results due to the continued economic uncertainty and overall impact on insurance supply chains, predicted John Worth, group chief financial officer at motor insurer Hastings.

In its H1 financial results published this morning, for the year up to 30 June, Hastings noted the continued escalation of claims severity linked to the pandemic – Worth thinks this increased claims inflation will continue into 2020’s H2, which is why the insurer has amended its reserving position accordingly.

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