Insurers driving up own premiums

Published: 19/07/2012

Portraying themselves as victims and the PI industry as the villains in the escalating cost of insurance premiums, new research has revealed insurance companies are in fact contributing to their own cause.

The survey of 900 claimants, commissioned by RJW Slater & Gordon in response to the Association of British Insurer’s claims “ambulance chasing” lawyers and Claims Management Companies (CMCs) are driving the cost of insurance, has found 65% of claimants were initially contacted by an insurance company about making a claim.

These figures challenge the belief that the PI industry is the source behind an increase in claims and demonstrates that the insurance industry is responsible for a vast majority of the claims they have so publically criticised.

Neil Kinsella is the Chief Executive at RJW Slater & Gordon:

“It is quite shocking that the insurance industry has been portraying itself as a victim of the increase in personal injury claims, when it has been responsible for encouraging those claims in a clear majority of cases.

“If the insurance companies really want to see an end to the increase in personal injury claims and an end to increased premiums as a result they can make it happen very easily. They should simply stop actively encouraging people to make those claims.”

Content correct at time of publication