The increase in motor rates under investigation

The insurance commission has launched an investigation on a possible agreement among insurers to increase motor tariffs. This increase of 3% on average came into effect from 1 October and follows a first increase of 4% in September. Insurers are pointing their fingers at the high rate of accidents and fraud. According to the association of insurance companies, the loss ratio would be 81% in August compared to 75.2% for 2009. Experts estimate that a rate of 71% would place insurers in a balanced position.