Aviva says motor claims cost inflation starting to ease
Rising costs that have been pushing up the price of motor insurance and causing financial pain for underwriters have started to ease, according to Aviva.
Earlier this year a number of insurers flagged the rising costs of parts, labour and replacement cars. Car insurance prices have increased in response — according to comparison site confused.com, they are going up at an annual rate of 14 per cent.
But on Wednesday Aviva, one of the UK’s largest motor insurers, said that these pressures were easing. “Inflation peaked in the second quarter at 12 per cent and is coming back to the 8-10 per cent range,” Aviva chief executive Amanda Blanc told the Financial Times.
This story originally appeared on: Financial Times - Author:Oliver Ralph
