In recent years, the insurance industry has been heavily impacted by claims inflation and motor insurance is no exception to this. In 2021, motor claims pay-out inflation increased by over six per cent, taking the average cost per claim to £5,349.
Many industries in the UK are being challenged by ever-increasing energy prices and the motor sector is certainly one of them, impacting every stage of a vehicle’s life. This includes manufacturing and day-to-day running costs, along with the expenses and outgoings associated with maintaining and repairing the vehicle.
The industry’s collective energy bill has risen by more than £100 million over the last 12 months to at least £300 million, and it is now the single biggest concern for UK automotive manufacturers.
As a result, the UK automotive manufacturing industry is facing some of the highest electricity costs in Europe and is requesting extra support for businesses facing high energy costs whilst making the transition to Net Zero.
How does this affect insurance?
As wholesale gas and energy supply is becoming a more precious and valuable commodity, repair centres and manufacturers are impacted, with many having to pass costs onto customers, further increasing inflation and costs of claims.
But while un certainty in the energy sector does have an impact on insurance, there are specialist brokers who have the experience to manage this. Aston Lark is one of these specialist insurance brokers that recognises and reacts to the wide variety of factors – including energy pressures and fluctuations, and remains committed to supporting their customers for as long as this situation continues.
Existing customers are encouraged to discuss and ask questions about existing policies by calling their Aston Lark representative. Potential customers are encouraged to reach out to one of their specialist teams.
