IAG Forced to Write Off $365,000,000 Thanks to Compensation Claims

One of Australia's largest insurance companies has had to write off more the $350 million dollars due, in part, to an increase in personal injury compensation claims in the UK.

They claim that the rise has been fuelled by people being more willing to make insurance claims if they suffer a personal injury in an accident thanks to the current economic climate. The news has forced them to drop their profit margin forecast from 11% to 6%. The company also claims that it will have to raise insurance premiums in the UK by between 10-20% to make up for the write off. The news has also caused a drop in share prices for the company, with an early slump yesterday dropping prices by 10%.