Insurers must beware fraud but will need to deal with genuine
claims quickly and sensitively, particularly for parties in
financial difficulty.
The shock of the corona¬virus pandemic has had an impact on
motor insurers and the claims market already. Its ripples will
continue as the UK regains some sense of normality in the coming
weeks and months.
In the short term, the restrictions on movement and the closures
of many workplaces have resulted in fewer journeys requiring a
motor vehicle being made. While government data has indicated
vehicle usage has been creeping up compared to the past four weeks,
the number of journeys undertaken remains considerably lower than
usual.
Reflecting this new reality, one major UK insurer has already
offered a rebate to customers to compensate for the decline in
motor use; a similar measure has already been introduced by
insurers in France and the US. Fewer journeys mean fewer
collisions, which in turn drives claims numbers and
