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INSURANCE PREMIUMS SET TO RISE
Friday October 13, 2017 - Email this article to a friend

That's the warning from snowsports insurance specialist, MPI brokers. Poor snow, increasing claims & a fall in sterling are blamed.

 

Don't be surprised by higher travel insurance premiums.

UK providers are under mounting pressure from more and larger claims and bigger injury awards.

Insurers are reportedly paying £1 million a day in travel claims, with the rising cost of emergency medical treatment abroad are a major contributor.

Here at PlanetSKI we understand there was an increase in claims last winter in part due to the poor snow conditions in the early part of the winter.

This led to crowded slopes with icy and exposed pistes.

Crowded slopes with limited snow coverCrowded slopes with limited snow cover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To some extent this reflects a weaker pound since the UK voted to leave the EU.

But it seems other factors are also influencing the growing number of large claims.

Quoting an Association of British Insurers analysis, the trade paper International Travel and Health Insurance Journal recently reported that in 2016 there were 480,000 travel insurance claims, costing £370 million.

The major elements of this were:

  • 154,000 emergency medical cases: £199m
  • 159,000 holiday cancellations: £130m
  • 83,000 losses of baggage and money: £17m

Accidents on the slopesAccidents on the slopes

 

 

 

 

 

 

 

 

 

 

 

In line with industry trends, MPI has noted increases in the number and size of travel insurance claims in recent months.

Further pressure on travel insurance premiums is likely following a change in the method of calculating compensation for personal injury claims.

In travel insurance these are typically where a traveller has caused accidental bodily injury to another person.

Earlier this year, the Lord Chancellor announced that the Ogden 'discount' rate, on which compensation is calculated, would decrease from +2.5% to -0.75%.

This 'inflation' has the potential to increase awards significantly.

Premiums set to risePremiums set to rise

 

 

 

 

 

 

 

 

 

 

 

 

See here for the main PlanetSKI news page with all the latest stories from the mountains.

For the Spirit of the Mountains - PlanetSKI: No1 for ski news

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