Car Insurer Hikes Premiums As Claims Rise
Motor insurer Admiral blames the recession for a rising number of insurance claims causing its premium rates to jump 5.5%.Motor insurer Admiral blames the recession for a rising number of insurance claims causing its premium rates to jump 5.5%.
The group announced the move after revealing its results for the first half of the year, which showed a 5% jump in profit of £105.3m.
The company’s profits were boosted by a rise in car insurance premiums, allowing it to raise rates by an average 5.5%, which means its rates are now 8% higher than a year ago.
David Stevens, group chief operating officer told Sky News a spiralling claims culture was behind the rise in premiums.
He warned rates could rise by another 6% over the next six months.
The group, which sells insurance under the Admiral, Bell, Diamond and Elephant.co.uk brands and also owns comparison website Confused.com, also benefited from steady growth in UK sales.
Its customer base rose by 17%, boosting turnover to £540m.
Henry Engelhardt, group chief executive said: “Considering the general economic climate and pathetic investment returns this was an outstanding result.”
