Costly car insurance premiums ahead, warns Admiral

Posted :04-09-2007

Consumers face the possibility of an increase in their car insurance premiums as they are set to rise faster than inflation, according to Admiral.

The company stated that it believes the industry sector cannot keep using its existing surplus to subsidise consumers' premiums.

Chief operating officer for the insurance provider David Stevens commented: "I believe that the current level of reserve releases for the market is not sustainable in the long-term and that as these releases are expended it will put more pressure on individual insurers to accelerate increases."

Premiums from Admiral have risen by over five per cent in the last year.

Mr Stevens added that the underlying profitability of the market will be the biggest factor in whether premium inflation speeds up into next year.

Admiral is a car insurance firm that operates in the UK through its Bell, Diamond Elephant.co.uk and Admiral brands.


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