Whilst fellow antipodeans QBE reckon their current reserves will comfortably cover losses from both the Guff of Mexico oil spill and the tumultuous UK motor market, Australian Insurer IAG has been forced to strengthen its reserves to cover claims arising from the UK motor insurance sector.
IAG CEO Michael Wilkins said: “The increase in bodily injury claims is a problem confronting the entire UK motor insurance industry. In light of this and a significant deterioration in claim payments in the opening months of calendar 2010, a further review of our UK claim reserves was undertaken. This has revealed that a significant revision to our reserves is required.”
IAG UK boss Alison Uttley doesn’t hesitate to finger claims farmers: “The UK insurance industry has seen a significant increase in the cost of bodily injury claims. This includes a notable rise in the number of injured parties per accident, primarily driven by the ‘claim farming’ activities of accident lawyers.”
