Car insurers in the UK experienced combined losses of £3.5bn ($4.5bn) 2016 following the introduction of new compensation rules for serious injuries, according to a report from consultancy EY. The study predicts that the changes to the Ogden formula, used in UK court cases, will also lead to further increases in insurance premiums, particularly for younger drivers. One of the worst affected companies was Admiral, which saw a £105m fall in profits to £284.3m. The NHS and other public sector groups, including the armed forces, are expected to face costs of almost £6bn.
Car insurers in the UK experienced combined losses of £3.5bn ($4.5bn) last year following the introduction of new compensation rules for serious injuries, according to a report from consultancy EY. The study predicts that the changes to the Ogden formula, used in UK court cases, will also lead to further increases in insurance premiums, particularly for younger drivers. One of the worst affected companies was Admiral, which saw a £105m fall in profits to £284.3m. The NHS and other public sector groups, including the armed forces, are expected to face costs of almost £6bn.