Claims inflation: What’s driving up the cost of claims?

We’ve all recently seen and will continue to see, a rise in the cost of living as the Consumer Price Index (CPI) reached its highest level since 2008.* With costs of motor fuel increasing last year and energy prices set to rise in the coming months** - it’s safe to say many of us will be feeling the pinch.

From an insurance perspective, this is having a knock-on effect on claims inflation and is a real hot topic amongst our broker community.

Chris Hughes, Commercial Claims Director, presented on the subject at our February Roadshows and it was the most attended session; rated 8.3/10 in post-event feedback. This demonstrates an appetite to hear from us at Aviva on this issue that's having such a huge impact on our industry.

If you missed the Claims Trends session or would like to watch any of them again, the Roadshows are available on here on demand.

If you don’t have time to go back and watch the session in its entirety, we’ve developed this summary guide as a handy take away. This document is designed to give you an overview of the different factors which have contributed to these rising costs, whether that’s COVID-19, Brexit, Electric Vehicle (EV) technology developments or climate change and the impacts we’ve seen on claims as a result.

This may be a helpful tool when talking about increasing claims costs and policy rating with your customers and clients.

*Consumer price inflation, UK - Office for National Statistics

**Price cap to increase by £693 from April | Ofgem