Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • February 2015
02

Average motor insurance premium down by 4%

Open-access content Wednesday 4th February 2015 — updated 5.13pm, Wednesday 29th April 2020

The average premium for motor insurance in 2014 fell by 4% from 2013, according to the Association of British Insurers (ABI).

2

The ABI confirmed the average premium for 2014 was £360.75 - down from £374 in 2013. 

The ABI said ongoing competition in the market and a reduction in lawyers' fees caused the drop in premiums, and savings of £595m were passed to motorists.

James Dalton, director of general insurance policy at the ABI, said a stronger economy and lower oil prices led to greater car usage, therefore increasing road accidents. 

He said: "In 2014 we have seen an increase in low value claims starting to feed through into pricing. This is not surprising as rising economic confidence, high employment levels and falling oil prices have seen more cars on the road and greater use of cars for work and business use which increases accident volumes."

Dalton also explained how new body MedCo would help reduce whiplash claims. Set up last year, MedCo is an independent body funded by the insurance industry to randomly assign medical experts to assess soft tissue injury claims in order to reduce whiplash frauds.

He said: "The introduction of MedCo to oversee the production of independent medical reports in whiplash claims should deter the cheats and ensure honest motorists continue to get competitively-priced motor insurance."

This article appeared in our February 2015 issue of The Actuary.
Click here to view this issue
Filed in
02
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Catastrophe Analyst

London, England
£70000 - £100000 per annum
Reference
146055

Catastrophe Analyst

London, England
Up to £50000 per annum + + Bonus
Reference
146053

Principal Pricing Analyst

England, London
£60000 - £70000 per annum
Reference
146052
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ