The latest Claim Metrics benchmarking analysis from Willis Towers Watson is here, and it points to where in the UK it is costliest to settle a motor claim as well as where payout inflation is accelerating the most.
Based on motor claims settled between January 01 and September 30 last year, it was found that the North West England maintained its position as the region with the highest average cost per claim (ACPC) in 2018. Its ACPC stood at £5,403. The lowest average, meanwhile, was recorded in the South West.
What’s also worthy of note, though, is where motor claims payout inflation is occurring the fastest. According to Claim Metrics data, ACPC rose 22.4% from 2016 to 2018 in both Wales and the North East.
Across the UK, overall ACPC is pegged at £4,791.
“The cost of settling claims continues to climb, despite accident volumes being fairly stable,” said Tom Helm, head of claims consulting at Willis Towers Watson.
“A combination of factors is driving this trend, including rising vehicle repair costs as cars become ever more high-tech, increasing repair complexity, a spike in theft claims and ongoing fraud which, together with market dynamics, are influencing gross damage and associated costs.”
Helm added that claims inflation is expected to rise further this year, compounded by the impact Brexit could have on the cost of imported parts.