Claims Direct has said that its overall losses for the year ending 31 March are likely to be £22m - up from £20.2m last year.
It did explain, however, that it had increased its period for receipt of premium income for about four weeks to about eight weeks. This means that its revenue from February and March will not be received in this financial year.
The company also said "the number of accepted cases has continued to remain at the lower rates experienced during 2001 due to lower levels of activity as the new business model was being developed".
It introduced the new business model following the acquisition of Claimline.
Chief executive Ronnie Henderson said: "The recent acquisition of Claimline, the launch of the new business model, and the other developments referred to, are all building the platform from which we can re-establish Claims Direct's business and restore its profitability and reputation."
