AI Claims in line despite fall in road accidents

AI Claims Solutions, the Lancashire company which handles motor insurance claims on an outsourced basis, says it is continuing to trade in line with market hopes.

The Blackpool-based company said its performance came against tough market conditions caused by fewer people using their cars and consequently having accidents.

It said: “As has been widely reported, the insurance market has witnessed a reduction in the frequency of motor accidents.This is attributed to economic factors affecting motorists, including significant increases in both motor insurance premiums and petrol prices.

“Against a backdrop of a difficult UK economy, the company continues to develop new service offerings and maintains a strong focus on margins and costs.”

AI, which in its half year results in March doubled profits to £1.6m and announced revenue growth from £38m to £60m, said it did not expect to be badly affected by proposed changes to the personal injury claims sector.

“The company also notes the recent position taken by the Association of British Insurers calling for a ban on the payment of referral fees by solicitors to insurance companies and intermediaries in relation to Personal Injury compensation claims.

“The company handles a small number of Personal Injury claims which have an immaterial impact on its trading results.”

AI Claims will report its results for the year to the end of June on September 27.