Insurance
Thread Starter
Joined: Mar 2002
Posts: 6,326
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From: Ulaanbaatar
Insurance
I've just had the renewal cost through for my daily driver; an increase of 40%. That's despite no convictions or 'incidents' and an increase in my NCB..
And the usual response from the industry is 40% (coincidentally...) of all premiums are accounted for by legal costs and personal injury claims.
A friend cannot insure his son for less than £3,600 - is it any wonder there's so many alleged uninsured drivers.
And the usual response from the industry is 40% (coincidentally...) of all premiums are accounted for by legal costs and personal injury claims.
A friend cannot insure his son for less than £3,600 - is it any wonder there's so many alleged uninsured drivers.
Former Moderator
Joined: Jan 2004
Posts: 24,769
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From: Stanmore
One example of the state of Motor insurers
Equity Red Star results at 31.12.2010 (figures in £m)
Net Premiums Earned: £509.0
Net claims Incurred: -£830.6
Operating Expenses: -£182.5
Investment Return: £4.7
Result -£499.4
A big proportion of the loss was down to needing to increase reserves for existing claims by £267.8m
Some insurers are making profits (Admiral being the most notable) but the vast majority are turning in big losses.
Useful reading here http://www.emb.com/u...nfused_2011.php
and here http://claimscouncil.org/system/file...pdf?1289993266
Equity Red Star results at 31.12.2010 (figures in £m)
Net Premiums Earned: £509.0
Net claims Incurred: -£830.6
Operating Expenses: -£182.5
Investment Return: £4.7
Result -£499.4
A big proportion of the loss was down to needing to increase reserves for existing claims by £267.8m
Some insurers are making profits (Admiral being the most notable) but the vast majority are turning in big losses.
Useful reading here http://www.emb.com/u...nfused_2011.php
and here http://claimscouncil.org/system/file...pdf?1289993266
Thread Starter
Joined: Mar 2002
Posts: 6,326
Likes: 1
From: Ulaanbaatar
I have zero sympathy for insurers.
What goes around, comes around and they (and us) are paying the price for their business practices; selling leads and introductions for personal injury claims to the highest bidder is biting them - and now us, their customers - on the ass.
There's even evidence of the drivers of the recovery vehicles being paid fees to pass details of those involved in incidents on to the blood-suckers.
Claims management companies and vehicle hire companies are in on it too; there was recently a case of a footballer whose incident in his Audi Q7 resulted in vehicle hire costs alone of £79K being submitted to the other party/insurer.
The accountants, lawyers and the unscrupulous are all profiting from the silent majority.
What goes around, comes around and they (and us) are paying the price for their business practices; selling leads and introductions for personal injury claims to the highest bidder is biting them - and now us, their customers - on the ass.
There's even evidence of the drivers of the recovery vehicles being paid fees to pass details of those involved in incidents on to the blood-suckers.
Claims management companies and vehicle hire companies are in on it too; there was recently a case of a footballer whose incident in his Audi Q7 resulted in vehicle hire costs alone of £79K being submitted to the other party/insurer.
The accountants, lawyers and the unscrupulous are all profiting from the silent majority.
Former Moderator
Joined: Jan 2004
Posts: 24,769
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From: Stanmore
But mostly the lawyers.
In our view, the biggest single factor driving price increases is the burgeoning cost of bodily injury claims. EMB has recently provided a representative on the Institute and
Faculty of Actuaries Third Party Working Party which found that overall BI claims inflation is now running at about 30%. The study, which had unprecedented access to
data supplied by companies making up almost 90% of the UK motor insurance market, showed that around a third of the increase is due to the higher number of bodily injury
claims while the remainder can be attributed to the higher average cost of settling claims (including an increase in the number of claimants per claim). Notably, the increases come at a time when the overall number of reported accidents has been falling.
We estimate that twenty years ago bodily injury claims accounted for around 20% of UK motor insurance claims costs.In 2010 we now estimate that proportion to be 50%.
Faculty of Actuaries Third Party Working Party which found that overall BI claims inflation is now running at about 30%. The study, which had unprecedented access to
data supplied by companies making up almost 90% of the UK motor insurance market, showed that around a third of the increase is due to the higher number of bodily injury
claims while the remainder can be attributed to the higher average cost of settling claims (including an increase in the number of claimants per claim). Notably, the increases come at a time when the overall number of reported accidents has been falling.
We estimate that twenty years ago bodily injury claims accounted for around 20% of UK motor insurance claims costs.In 2010 we now estimate that proportion to be 50%.
Registered User
Joined: Oct 2007
Posts: 4,714
Likes: 1
From: coventry, UK
i hope you questioned the increase and made sure your not happy with it.
i'll be making sure i complain if my insurance is higher this year than last; im already paying enough as it is (£1200 with 10yrs ncb, clean licence)
i'll be making sure i complain if my insurance is higher this year than last; im already paying enough as it is (£1200 with 10yrs ncb, clean licence)
Registered User
Joined: Jun 2006
Posts: 50
Likes: 0
From: Dundee
My wife and i have just moved house recently. When i called my insurance company to inform them of my new address i was told i had a £10 increase on my premium. The car would no longer be on the street but in a secure driveway from now on and we have moved to a very good post code.
I flat out refused to pay the excess and asked to speak to a manager or underwriter. The guy asked me to hold on for a mo and went and talked to someone for me and when he came back he said that it was fine and i didn't have to pay anything. I can only imagine how many honest hardworking folk they catch out like that and get an extra few quid from them.
They'll need to get up earlier than that to get extra money from this tight fisted Scotsman
Cheers
Melly
I flat out refused to pay the excess and asked to speak to a manager or underwriter. The guy asked me to hold on for a mo and went and talked to someone for me and when he came back he said that it was fine and i didn't have to pay anything. I can only imagine how many honest hardworking folk they catch out like that and get an extra few quid from them.
They'll need to get up earlier than that to get extra money from this tight fisted Scotsman
Cheers
Melly
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