Decisive steps taken push 'corrective rate action'
Zurich chief executive Stephen Lewis has said the insurer will raise personal lines motor rates up to 20% to combat escalating claims.
Lewis explained: “We have seen a 30% increase in bodily injury frequency with a worsening trend throughout 2009. This, combined with high inflation, has resulted in a 50% increase in the cost of covering bodily injury losses in the last few years.
“With this trend showing no signs of slowing down, we are taking decisive steps to lead the market in driving the corrective rate action that the motor line of business clearly needs.”
He continued: “As a result, we will move rates on our broker business by as much as 20% in March to address this trend – over and above the rating action we have already taken. As this is an industry and distribution-wide issue, our colleagues in the direct channel are taking similar action on their book.”