Premiums up another 12% in Q4

New figures from the Association of British Insurers have found that motor insurance premiums rose 12% in the fourth quarter of 2023.

Average policies increased from £526 in the third quarter to £627 in the last three months of the year. This is 34% higher than the average motor insurance policy in the fourth quarter of 2022, which was £470.

Taking the year as whole, prices rose by more than 25% from 2022.

Meanwhile, payouts for vehicle thefts rose 35% in the third quarter of 2023 compared to the same period the previous year, while repair costs spiked by 32% to £1.6bn.

The research also revealed that electric vehicles are approximately 25% more expensive to repair than their petrol equivalents and take 14% longer.

Mervyn Skeet, Director of General Insurance Policy, ABI, said, “We’re acutely aware of the impact that rising motor insurance premiums continue to have on motorists. Rising repair costs and other factors outside of insurers’ control mean there is no single action that could bring down premiums. However, we are determined to do all we can to put the brake on.

“We are working with our members to understand what actions can be taken to help motorists manage costs. The cost of paying monthly (premium finance) is one of a number of topics we continue to discuss with our members and the Financial Conduct Authority (FCA). We’ve also been very clear, and continue to underline, that cutting Insurance Premium Tax would provide immediate relief for stretched consumers. We will be saying more, as we can, on other steps we will take in the coming weeks.”

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Thatcham Research hosts BYD Product Showcase 

For two days in January (Wednesday 24 and Thursday 25 January 2024) Thatcham Research played host to a number of invited guests for Chinese vehicle manufacturer BYD (Build Your Dreams) Product Showcase. ARC360 was on hand to explore the products, learn more of the Thatcham Research – BYD relationship, and glean insights in the vehicle manufacturers plans for 2024. 

In 2023, BYD sold a total of 3,024,417 new energy passenger vehicles worldwide. During Q4 2023 it also claimed the crown as the global leader in electric vehicle sales. Its self-proclaimed ‘the biggest electric vehicle company you’ve never heard’ is therefore fitting but all that would appear to be about to change. 

Founded in February 1995, BYD is a high tech, vertically integrated company devoted to leveraging technological innovations for a better life. Already established in more than 70 countries and 400-plus cities worldwide, the business has in excess of 600,000 employees worldwide.   

Its mission is to ‘Cool the Earth by 1°C’ by creating a complete, zero emission ecosystem powered by clean energy. Its products are already synonymous across battery-electric vehicles; buses; trucks and forklifts; the SkyRail monorail system; solar power generation and energy storage systems; and consumer electronics.  

With its automobile division now within the European market – and significant plans – the business is truly poised to establish itself as the leading New Energy Vehicle (NEV) brand. 

The day highlighted BYD’s three current Euro NCAP five-star rated models in the UK: ATTO 3 (SUV), DOLPHIN (small hatchback) and SEAL (premium saloon) with BYD and Thatcham Research experts on hand to guide delegates around the vehicles as well as learn more during a number of engaging and insightful seminars. Attendees also got the opportunity for a ‘ride experience’ in the vehicles – further demonstrating their ADAS technical capabilities and systems. 

In a move which supports the claims sector’s ongoing desire for consistency and transparency with advancing technology, safety and driver assistance systems are standard throughout model ranges on BYD vehicles. As an example, the SEAL – both Design and Excellence AWD versions – feature a plethora of systems: 

  • Adaptive Cruise Control (ACC) & Intelligent Cruise Control (ICC) 
  • Intelligent Speed Limit Information (ISLI) & Intelligent Speed Limit Control (ISLC) 
  • Predictive Collision Warning (PCW) 
  • Forward Collision Warning (FCW) 
  • Automatic Emergency Braking (AEB) 
  • Rear Collision Warning (RCW) 
  • Front Cross Traffic Alert (FCTA) & Front Cross Traffic Brake (FCTB) 
  • Rear Cross Traffic Alert (RCTA) & Rear Cross Traffic Brake (RCTB) 
  • Lane Departure Assistant (LDA) & Lane Departure Warning (LDW) 
  • Emergency Lane Keeping Assist (ELK) 
  • Traffic Jam Assist (TJA) 
  • Traffic Sign Recognition (TSR) 

Jonathan Hewett, Chief Executive, Thatcham Research explained, “We have worked with the BYD team to ensure safety, security and sustainable repairs are design attributes and in turn, that data supporting these important areas will be available to the insurance industry. This is vital as the whole mobility ecosystem embraces the seismic change to vehicles with ever more driver assistance systems, connectivity and electrified powertrains impacting risk.” 

With its vehicle range, BYD brings a host of innovation including its industry-leading Blade Battery, e-Platform 3.0 and Dual-mode hybrid power technology. 

BYD’s Blade Battery is developed on four key principles: enhanced safety, optimised strength, longer range and longer lifecycle. Arranged in an array of one rectangular flat pack, each cell serves as a structural beam to help withstand the force. The aluminium honeycomb-like structure, with high-strength panels on upper and lower side of the pack, greatly enhances the rigidity in vertical direction. 

The e-Platform 3.0 – common across all three models – is designed exclusively for pure electric vehicles creating efficient and safer new intelligent EVs. The SEAL is the first model equipped with the in-house developed CTB (cell to body) technology which integrates the Blade Battery into the car body. This ‘sandwich’ structure makes the Blade Battery both an energy storage unit and a structural component capable of withstanding significant forces. 

Adding to the three current models, BYD also has plans to introduce a hybrid SEAL U later this year – a proven strategy in other markets to support the mass market ‘transition’ to NEVs. 

Clearly, BYD already has a foothold within the UK with 24 ‘Pioneer’ stores now open across the country but 2024 will see the business significantly ramp up its presence across the market – plans for 70 dealerships by the end of the year indicating that intent.  

And with that, the aftermarket is poised to play its role – supported by Thatcham Research with information around vehicle technologies, repair strategies, known risks, technical support and standards helping to guide the sector during what promises to be evermore changing times.   

Watch this space! 

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Volkswagen ID.7 wins What Car? Safety Award

Volkswagen’s ID.7 has topped a five-car shortlist to win the 2024 What Car? Safety Award.

It won the award based on Euro NCAP test scores as well safety systems such as active and passive safety technology.

The ID.7 features a variety of innovative safety technology aimed at reducing risk to vulnerable road users such as a pop-up bonnet and sudden door opening prevention should a cyclist ride alongside the driver door. Meanwhile, its 95% adult occupant protection score was also the highest of any car that featured in the Safety Award shortlist.

A statement said: “The ID.7 provides technology to encourage safer driving and performed well across Euro NCAP’s increasingly challenging testing, from passive crash protection to active crash prevention. It is the combination of all these systems within the ID.7 that makes it stand out as the 2024 Safety Award winner.”

Also nominated were the BMW 5 Series, BYD SEAL, Lexus RZ, and Mercedes EQE SUV.

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ARC360 News Round-Up – Friday 26 January 2024

Bodyshop briefs

  • Fix Auto UK has announced that South Wales repairer Select Accident Repair Centre has joined its network and will now operate as Fix Auto Neath.
  • Fix Auto Basingstoke owner Dale Morris has opened his second repair centre and the first within Fix Auto UK’s network solely dedicated to repairing vans, LCVs and motorhomes.
  • Turners Accident Repair has opened its new 20,000 sqft Sheffield site, featuring three new commercial spraybooths and a full Car-O-Liner structural aluminium repair facility.
  • Steer Automotive Group has established an ESG Committee to champion sustainability, social responsibility, and ethical governance.

Industry News

ARC360 partners with Repairify for ADAS roundtable

ARC360, in partnership with Repairify, hosted an ADAS roundtable discussion on Wednesday 23 January supported by a number of key insurers. The session explored the current status of the market and discussed a number of key areas of challenge and opportunity all through the lens of enhancing the overall claims process for all stakeholders in future.

A full overview of the event – using Chatham House Rules – will be released in the coming weeks.

ARC360 heads to Thatcham Research for BYD event

ARC360 attended the BYD product showcase event hosted by Thatcham Research on Thursday 24 January. The insightful day included an up close and personal look at BYD products, a ride experience and a deep dive into BYD global, along with plans for the UK.

A full review of the day will be available in the coming weeks.

Enterprise Mobility publishes ESG successes

Enterprise Mobility has released its latest Environmental, Social and Governance (ESG) report.

Highlights include 20,000 colleagues being promoted or moved to new roles globally in the last year, £66m donated to charitable organisations, and an estimated 1,526 tons of glass recycled and 5,467 tones of materials from tyres recycled in North America alone.

Activate Group secures Elysian Capital investment

Activate Group will expand its accident repair network with four new sites this year after securing major investment from Elysian Capital.

As part of the deal, Elysian Capital partner James Cunningham becomes chairman, while Activate Group co-founder Hannah Wilcox remains CEO.

Grey shades black and white

Grey is still the most popular colour for car buyers with a market share of 26.8%, according to the Society of Motor Manufacturers and Traders (SMMT).

Black and white are the second and third most popular choices, meaning 63.5% of all new cars joining UK roads in 2023 were monochrome.

Car thefts up five per cent

New data has found that a car was stolen in Britain every eight minutes and 12 seconds last year.

A total of 64,087 cars were reported stolen to the Driver and Vehicle Licensing Agency in 2023, up from 61,106 the previous year, representing a five per cent increase.

BASF to deliver battery recycling solution to Iveco

Iveco Group has selected BASF to provide a recycling solution for the lithium-ion batteries of the group’s electric vehicles.

The agreement includes the collection, packaging, transport, and recycling of batteries in European countries including France, Germany and UK.

Government shelves plans to extend MOTs

The UK government has announced that plans to extend the MOT testing periods will not be introduced.

It had been considering extending the first test after registration from three years to four years, and extending the gap between MOT tests thereafter from one year to two years.

NBRA calls for urgent in-vehicle legislation

The National Body Repair Association (NBRA) has called for urgent European legislation around access to in-vehicle data.

As part of the Association Internationale des Réparateurs en Carrosserie (AIRC), it has signed a letter to the European Commission calling for sector-specific legislation on access to in-vehicle data, functions, and resources.

Vehicle production exceeds the million milestone

UK production topped one million vehicles last year for the first time since before the pandemic.

According to figures published by the Society of Motor Manufacturers and Traders, 905,117 cars and 120,357 commercial vehicles were produced in 2023 for a combined total of 1,025,474.

School of Thought gearing up for #AWE24

School of Thought will be hosting its first ever work experience week for automotive from 15-19 April.

#AWE24 aims to inspire the next generation to join the sector through advice, skills development, and first-hand experience of the industry.

Global Ardour acquisition enhances recycling capabilities

Global Metcorp and Ardour World have acquired Recycling Lives Group, one of the UK’s leading recycling companies.

The acquisition, which includes two full recycling facilities at Preston and Hitchin, will support Global and Ardour diversify operations into complete waste management.

PartsXChange launches desktop solution

Bodyshop marketplace PartsXChange has unveiled the desktop version of its application, which includes new features such as a bulk search option.

QuestGates confirms CMA acquisition

QuestGates has strengthened its position in the motor claims sector with the acquisition of Claims Management & Adjusting, which deals with all types of specialist vehicle claims including high-value RTC related fraud investigations.

NFDA calls for automotive Budget boost

The NFDA has urged the government to provide greater support to the automotive industry in its Spring Budget.

In a letter to Chancellor Jeremy Hunt, it has called for Apprenticeship Levy reform and customer incentives to drive electric vehicle uptake.

VM news

Lexus celebrates What Car? treble

The Lexus LBX has been named the What Car? Car of the Year 2024. It also collected the Small SUV of the Year award, while Lexus won the Reliability Award for the seventh year in a row.

Suzuki celebrates CSI success

Suzuki GB topped the automotive rankings in the latest UK CSI report produced by the Institute of Customer Service for the eighth time out of the last 11.

Stellantis signs CloudMade IP deal

Stellantis has acquired the artificial intelligence framework, machine learning models and intellectual property rights and patents of CloudMade, which develops big data-driven automotive solutions.

The deal will support Stellantis ambitions to deliver enhanced in-car services and gain deeper data-based insights.

Tesla production up 38%

Tesla manufactured about 495,000 vehicles in the final quarter of 2023, with production across the year up 38% to 1.85 million units.

People

  • The IMI has revealed the shortlists for its annual awards. Among those in line to win the Automotive 30% Club’s Inspiring Automotive Women’s award are Alena Woolacott, Finance Director at Fix Auto Mid Devon & Newton Abbot, Stephanie Brindley, Area Operations Leader at SOLUS, and Kellie Smith, UK Remarketing Account Manager (Commercial Vehicles) at Enterprise Mobility.
  • Christopher O’Rourke has been appointed as the Managing Director for LKQ Bodyshop, succeeding Andy Southby, who has moved to Chief Commercial Officer for the LKQ UK and Ireland Group.
  • Sedgwick UK has appointed Joseph Ashworth as Head of Motor.
  • Dave Wozniak has been named Network Compliance Manager for the Avant Consult VWG Paint and Body Team.
  • Komoo has announced that Cary Clark has joined the business as Territory Manager.
  • Bianca Dubiel has been named Network Relationship Program Manager at LKQ Corporation.
  • Dave Dolan has started a new position as Vehicle Body Repair Manager at Herd Group.
  • ABL 1 Touch Group has named Andrew Goodings as Senior Product Manager.
  • Andy Pedrick has been namedGroup Support Manager at Steer Automotive Group.
  • Toyota (GB) plc has appointed Richard Balshaw to the new role of Director, Strategy, Business Transformation and People.

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Vehicle production surges to pre-pandemic levels

UK production topped one million vehicles last year for the first time since before the pandemic.

According to figures published by the Society of Motor Manufacturers and Traders, 905,117 cars and 120,357 commercial vehicles were produced in 2023 for a combined total of 1,025,474.

Figures were boosted by a strong performance in December, when car production jumped by 20.7% year on year, and commercial vehicle volumes were up 80.3%.

Taking the year as a whole, car production rose 16.8% for a combined retail value of more than £50bn.

Mike Hawes, SMMT Chief Executive, said, “Receding supply chain challenges, new model introductions and a massive £23.7bn of investment put UK vehicle production firmly back on track in 2023. Industry will now focus on the delivery of these commitments, transitioning the sector at pace to electric and scaling up the supply chain. With global competition as fierce as it has ever been and amid escalating geopolitical tensions, both government and industry must remain singularly focused on competitiveness, with all the jobs and growth this will bring. We are in a much better position than a year ago, but the challenges are unrelenting.”

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Grey remains car buyers’ colour of choice

Grey is still the most popular colour for car buyers with a market share of 26.8%, according to the Society of Motor Manufacturers and Traders (SMMT).

Black and white are the second and third most popular choices, meaning 63.5% of all new cars joining UK roads in 2023 were monochrome.

Blue is the fourth most popular colour with a 10.9% market share, while red remain fifth choice and Green reached its highest volume since 2005 with 53,426 units and a market share of 2.8%.

Mike Hawes, SMMT Chief Executive, said: “2023 was a bumper year for the British new car market, as buyers continued to gravitate towards familiar monochrome hues for another year – even as ever more motorists embrace new technologies. Car manufacturers have diligently expanded their offerings, with a huge selection of colour options available across hundreds of models and thousands of specification options. The extensive variety allows drivers flexibility in choosing a tint that embodies their individuality and style.”

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ARC360 News Round-Up – Friday 19 January 2024

Bodyshop briefs

  • The five winners of Enterprise Rent-A-Car’s Net Promoter Score (NPS) awards are: Arnold Clark Aberdeen; Fylde Coast ARC; Ipswich ARC; The Car Refurb Centre; and Alton Cars Hull.
  • ECF Accident Repair Centre has secured a 100% NPS across all Volkswagen brands for three consecutive months.
  • Steer Automotive Group has introduced a new skills competition to help prepare technicians for the IMI Skills Competition. The competition will focus on refinishing and repair.
  • Drive Motor Retail has announced that Drive Redcar topped its Estimator League last year, which measures accuracy and performance.

Industry News

Industry mourns passing of ‘true gentleman’

The UK vehicle repair industry is mourning the loss of dedicated apprentice pioneer, Bob Linwood who sadly passed away on Wednesday 17 January 2024.

Bob was a driving force behind the founding of industry apprenticeship initiative Autoraise in 2015, a year later securing its recognition from the Charity Commission as a Charitable Incorporated Organisation (CIO). Bob was CEO of Autoraise until May 2021.

Dane Loosley, another industry stalwart, has also passed this week.

ILC and ARC360 would like to wish our condolences to both Bob and Dane’s families.

Steer secures Oakley investment

Steer Automotive Group has announced substantial new investment from Oakley Capital, a leading pan-European private equity investor.

Oakley will acquire the shares held by Keyhaven Capital Partners and Chiltern Capital while founder Richard Steer and the current management team will continue to lead the business.

Shortlist for What Car? Safety Awards revealed

Thatcham Research has announced the five-car shortlist for the What Car? Safety Award 2024.

Selected by judges based on Euro NCAP test scores as well as passive and active safety technology, the shortlist includes the BMW 5 Series, BYD SEAL, Lexus RZ, Mercedes EQE SUV, and Volkswagen ID.7.

Car insurance premiums soar by 58%

Average car insurance premiums rose by 58% in the last 12 months to £995.

According to the latest Confused.com Car Insurance Price Index, produced in association with WTW, the 58% rise represents an increase of £366 and means premiums have risen for nine consecutive quarters.

White shades black in colour charts

BASF has identified a significant colour shift in car popularity, with white still number one but experiencing a notable decrease in market share.

Meanwhile, its 2023 BASF Colour Report revealed that chromatic colours such as red, blue, brown and beige have remained stable, with a 19% market share.

S&G backs school racing team

S&G is sponsoring Exhausted Racing at Wilmslow High School, helping the team to design, create, market, and race in regional, national and international inter-school competitions.

EV repair costs edge above £3k

Gecko data has revealed that average BEV repairs costs have risen to £3,012, with labour costs at £628 and repair times stretching to 27 days.

Meanwhile, it found there were 968,528 BEVs on UK roads at the end of December.

Innovation tackles deepening pothole problem

Nearly 630,000 potholes were reported across the UK from January to November last year, costing drivers upwards of £500m in repairs.

However, innovation such as self-healing roads and digital maps could soon be available to tackle the issue.

NBRA confirms Greener Bodyshop Awards date

The National Body Repair Association (NBRA) has announced that the 2024 Greener Body Shop Awards (GBSA) will take place at the Coventry Building Society Arena on 10 September.

The awards recognise the businesses that have made great strides towards sustainability and introducing greener initiatives.

London traffic worst in the world

London traffic is the slowest in the world, according to a new report published by TomTom.

Its annual traffic index revealed that average speeds decreased in 228 of the 387 cities it analysed, with a typical 10k drive in London now taking 37 minutes and 20 seconds.

BenBus on the road

Automotive industry charity Ben has unveiled its new BenBus, a branded VW Transporter campervan which will raise awareness of the support it offers to those who have worked or are working in the sector.

The Ben on the road team will be visiting sites around the UK to showcase the van and promote the charity’s services.

Avant unveils new logo and website

Avant Consult has continued a major rebrand by unveiling its new logo and updated and upgraded website.

Stellantis announces updated EV training

Stellantis has announced that delegates can now book their places on the IMI-accredited Morelli Eyebox Training Centre Courses.

Modules include Introductory Awareness Courses designed for customer service teams, drivers, and non-production staff, as well as advanced Electric/Hybrid Vehicle Awareness Levels 1 & 3 courses.

Auto Windscreens signs digital deal with AA

Auto Windscreens has signed a digital claims partnership with The AA, enabling customers to arrange a glass repair or replacement online or via The AA’s app.

Dedicated AFV course set for February

Park Lodge International and Jeff Mack Consultancy will host its next safety course around Alternative Fuelled Vehicles on 6 February.

The eight-hour, IMI-accredited course will take place in Burnley, focusing on three key areas around AFVs: on-scene assessment of battery damage and potential risks; the safe repair of AFVs with high voltage battery damage; the safe storage of damaged AFVs at repair sites.

VM news

Tesla defends Autopilot safety standards

Tesla has hit back at media reports critical of its Autopilot technology, arguing that many of the articles lacked context.

It said that data proved its cars were far safer when Autopilot was engaged, revealing that just one crash for every 4.85 million miles was recorded under Autopilot in the fourth quarter of 2022, compared to one crash for every 1.4 million miles driven without it.

Ford launches new gen cruise control

Ford has introduced new generation Adaptive Cruise Control technology to its best-selling Kuga SUV. The system is now able to apply the brakes automatically for curves, junctions and other traffic.

Stellantis signs with SIXT

Stellantis has signed a multi-billion-pound deal with SIXT which could see the mobility service provider buy up to 250,000 Stellantis vehicles in the next three years.

Meanwhile, the manufacturer is investing in Tiamat to support the further development and commercialisation of sodium-ion battery technology.

Hyundai announces Ohme partnership

Hyundai Motor UK has announced a new partnership with smart home charging business Ohme as it continues to develop its elecrification strategy.

People

  • Dominic Clayden is stepping down as CEO of the Motor Insurers’ Bureau.
  • Repairify has appointed Santiago Malbran as Business Development Director to drive expansion across Europe.  
  • Toyota (GB) has appointed Richard Balshaw to the role of Director, Strategy, Business Transformation and People.
  • Graham Connell has been named Group Commercial Director at Alton Cars.
  • Avant Consult has appointed Hayley Ennis as Volkswagen Group Paint and Body Team Manager.
  • Dominic Czechak has joined Verisk as Strategic Account Director.
  • Komoo has named Cary Clark as new Territory Manager.

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White shades black in colour charts

BASF has identified a significant colour shift in car popularity, with white still number one but experiencing a notable decrease in market share.

Its 2023 BASF Colour Report revealed that although white remains the colour of choice, black has surged in popularity.

Meanwhile, chromatic colours such as red, blue, brown and beige have remained stable, with a 19% market share.

When looking at specific regions, there is a growing preference for lighter shades of silver over darker greys in North America, while the trend is reversed in EMEA. Meanwhile, there are specific colour preferences in Europe, with Germany favouring blue (11%), Spain and the UK opting for red and orange (nine per cent), France buyers going green (six per cent), and Italian drivers showing more love for chromatic colours than all five countries (30%).

Mark Gutjahr, Global Head of Automotive Colour Design for BASF, said, “While the achromatic colours are still the most popular, each country appears to have its favourite place on the chromatic realm. Different colour distribution could be seen in each of the major EMEA countries, and in general. Our customers, the automakers, have left a lot of room for individuality and creativity in car dealerships now, and car buyers are taking advantage of that.”

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Tesla defends Autopilot safety standards

Tesla has hit back at media reports critical of its Autopilot technology, arguing that many of the articles lacked context.

It said that data proved its cars were far safer when Autopilot was engaged, revealing that just one crash for every 4.85 million miles was recorded under Autopilot in the fourth quarter of 2022, compared to one crash for every 1.4 million miles driven without it.

It added that Autopilot features such as Traffic-Aware Cruise Control and Autosteer are both Level 2 driver-assist systems, meaning that the driver must still retain control of the vehicle at all the times, and Telsa developed a number of measures to ensure that drivers remain engaged, including torque-based and camera-based monitoring.

The company said, “The more automation technology offered to support the driver, the safer the driver and other road users. Autopilot is about 10 times safer than the US average and about five times safer than a Tesla with no Autopilot tech enabled. When used properly, it provides safety benefits on all road classes.”

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Car insurance premiums soar by 58%

Average car insurance premiums rose by 58% in the last 12 months to £995.

According to the latest Confused.com Car Insurance Price Index, produced in association with WTW, the 58% rise represents an increase of £366 and means premiums have risen for nine consecutive quarters.

Meanwhile, EV premiums have risen even more sharply due to longer repair times and the specialist knowledge required to repair them.

Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said, “The cost of car insurance spiralled in 2023 primarily due to the soaring price of used cars, although there is evidence of a market readjustment with values having slipped for the last four months.

“Insurers have also had to pass on the rising cost of spare parts and materials, more expensive repairs as cars become more sophisticated, labour shortages, extended vehicle loan times and a spike in personal injury claims.”

Steve Dukes, CEO at Confused.com, added, “The crumb of comfort will be that increases are somewhat smaller than in previous quarters, so many will be hoping this is a sign of a more stable period ahead. With things as volatile as they are, there’s a real need within the industry for more insight and sharing what we know. This can only benefit both businesses and customers as insurers make better, more informed decisions when it comes to pricing to try and stabilise the market even further.”

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