Car damage inflation cooling off - Jefferies
Jefferies’ UK motor insurance tracker has revealed that car damage inflation has dropped and is now at 7% year-on-year as the group maintained its forecast of a combined operating ratio of 116% for the market in 2022.
Car damage inflation has fallen from 10% in July, the experts suggested.
According to Jefferies one of the main drivers for claims severity inflation in the year to date had been the rising cost of second-hand cars.
It cited figures from the Office for National Statistics which showed a second-hand car now costs 5% more than it did a year ago whereas at the start of 2022 the rate of increase was being measured at 29%.
The equity analysts stated that despite rising new business premiums, it
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