Esure Plan to Raise Insurance Premiums After Profits Fall

Motor insurance provider, Esure, is planning to raise insurance premiums after half-year profits fell by four-fifths as a result of small injury claims.

The Sheilas' Wheels owner, which has more than 1.4 million motor insurance policies, saw its trading profits for motor insurance underwriting fall by 80.7 per cent due to the increase in small personal injury claims. The group, which also has approximately 570,000 home insurance policies, also saw shares drop by nearly 9%.

Stuart Vann, chief executive at Esure, said:

"The claims environment in the motor market continues to deteriorate and as a consequence we will seek to implement further rate increases in the second half."

Mr Vann's comment came after an AA report found that insurance claims had risen by 5.5 per cent in the second quarter across the industry after years of decline. AA also highlighted the issue of claims inflation, in particular the issue of more frequent claims of higher value.

If you've been injured and want to make a claim for compensation, contact our injury solicitors on 0800 567 7272 for advice.

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