The distinct possibility that damage awards arising from automobile accident claims will substantially increase in the U.K. has prompted the Association of British Insurers (ABI) to warn of possible big increases in rates.
According to a report in the Belfast Telegraph, an ABI spokesman said that if the courts decided to greatly increase damage payments in personal injury cases, it could cost insurers an extra £1 billion ($1.6 billion) per year.
In a pattern familiar to U.S. insurers, several companies have stopped writing automobile coverage in Northern Ireland due to the high level of claims, and the amounts awarded, which are substantially higher than elsewhere in the U.K.
Rates have already risen 10 percent for individuals and 20 percent for commercial liability insurance in the province, and the ABI warned that the same thing could happen elsewhere in the U.K., if courts followed a recent report by the Law Commission which suggested that damages should be increased substantially in injury cases. Some insurers foresee rate increases of up to 30 percent, particularly in commercial liability.
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
