AUTHORISATION

SECTION I
FUNDAMENTALS OF THE UBI MARKET
3. Changing claims costs
A key feature of the present motor insurance market is the changing outlay on
claims. While the number of accidents is said to decrease as a general long term
trend, the actual expenditure on claims has been evolving differently in each
country.
Licence
According to Insurance Europe, total claims have grown almost 20% in the period
between 2002 - 2010 across Europe. After 2010, the trend has gone the other way
due to the fall in road accidents. Only in 2015 are we seeing in countries like the
UK and Italy, the claims (and the premiums) levelling down.
agreement
signed by
Fig 1.20: Rising motor claims (in million) and expenditures in Europe (€ in millions)
55
54
54
53
53
52
Number claims notified
Claims expenditures
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for employees of
BBBB
99,000
97,000
95,000
93,000
51
51
50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
91,000
89,000
Source: Insurance Europe (EU 27)
The increase in claims costs in the 2004-2013 period goes against the long-term
trend in the reduction of accident volumes and the number of fatalities.
Strictly reserved to BBBB
Besides the cyclical nature of claims, this fall could be explained by the use of
telematics of course, but only in markets where the penetration is high enough,
like Italy.
employees. Distribution to third
Other triggers include the increasing penetration of standard safety features, the
lower mileage caused by the economic recession and the increasing average age
of drivers. Last but not least, an increasing number of countries have installed a
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