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The Actuary The magazine of the Institute & Faculty of Actuaries

Are motor insurance premiums too high?

Of course they are, if you are a motorist, especially a young driver faced with high premiums for the first few years. But a serious thought from Towers Watson is that their research suggests that insurers are willingly passing on higher premiums to motorists to pay for the significant level of fraud in the current claims experience.

Towers Watson recommends a much larger emphasis by insurers on their claims handling techniques in a market which they expect to be unprofitable for the next five years.