Barbados’ Insurance Industry is paying out millions of dollars annually in motor vehicle claims as road accidents continue to increase, a situation that officials say is being worsened by careless driving, distracted motorists, mounting repair costs and the growing challenge of uninsured drivers involved in collisions.

Claims manager at Co-operators General Insurance, Michael Holder, has warned that unless the trend is reversed, insurers may have little choice but to increase premiums to offset rising claims costs.

Speaking at Co-operators General’s hurricane preparedness promotion at the Patrick E. McDonald Building, Upper Collymore Rock, St Michael, yesterday, he said insurance companies were facing significant financial pressure as claims costs had now exceeded premium income across the industry.