Direct Line Insurance Company Profits Increase
At the end of February Allianz UK reported an increase in operating profits for 2017 of 26%. In addition, another insurer, one of the biggest in the UK, Direct Line also reported a rise in profit of 50% on 2016.
On the face of such huge financial success for the car insurance industry over the previous 18 months, it seems perverse that the current government accept claims reforms are necessary.
Why would they?
Direct Line admit that they have delivered strong financial performance in 2017. Many of these big insurance companies have consistently lobbied the government over the past few years. They want the government to bring in Ministry of Justice reforms to affect personal injury claims. Basically to make it more difficult to make a claim for whiplash for example. Read more details about this in an article entitled: Compensation Reform: The Big Insurance Lie
Samantha Hemsley was quoted by the Law Gazette recently and said, ‘Insurers like Allianz, despite their griping still enjoyed a 26% increase in profits to £121m this year’.
The general agreement among solicitors and pressure groups against compensation reform point out that car insurance policy holders are facing ever increasing premiums. The big insurance companies appear to be more concerned with increasing profit than paying out fair and justified compensation to clients.
Whiplash reforms are due to come info force April 2019 but it has not been finalised completely what those reforms may be yet.
However, it seems strange to demand compensation claim reforms when profits are so good for shareholders. For more information follow a pressure group on Facebook and called ‘Access to Justice‘ which disagrees with reform.