1 years "no claims" discount - but no discount?

newfoundglory

iamana1ias wrote: »

As an ex-employee I shan't comment on those articles, but I'd be amazed if much (if any) of that profit was from insurance premiums.

Your claim was for the industry as a whole. Perhaps you could provide a source for that?

Go and look up the profit increases for any large insurer. The pattern will be similar. Did you not notice in the article: premiums were up 22%, because of higher claims - but profit was up 21%. That doesn't around right to me.

Personally, I couldn't care less if premiums have to go up, all I want is my 30% NCD.

iamana1ias

newfoundglory wrote: »

Go and look up the profit increases for any large insurer. The pattern will be similar. Did you not notice in the article: premiums were up 22%, because of higher claims - but profit was up 21%. That doesn't around right to me.

Personally, I couldn't care less if premiums have to go up, all I want is my 30% NCD.

I read it. Did you not notice:

"Mr Stevens also defended the rise of about 22% in premiums, saying 2009 was a terrible year for the insurance industry as a whole. party because of the bad weather and the big increase in claim costs.

He said the claims were "partly from fraud and partly from more and more people feeling that they will make that claim for the whiplash that they might not have made a few years back".


This has led to the industry as a whole losing about 20p for every pound of premiums and a number of insurers having to make "much bigger than our own increases".
He explained that without their prices rises Admiral would have found themselves flooded by customers they could not handle."

mikey72

iamana1ias wrote: »

Because of people being obsessed with cheapness (as encouraged by this site).

No, because insurers are obsessed with headline premiums, poor service, but maximum profit from a compulsory service.
As for the industry as a whole, read my other references.
We agree the profits are not all from premiums, they're mainly from cynical manipulation of the customers.

newfoundglory

If my 1st years NCD only saves me £70 on my car insurance for the next year, i'm going to save a lot less (or more likely end up paying MORE than year 1) the following year.

Exactly how many years would I have to keep paying at least £60 per month to insure a Ford Ka with a £500 excess? Probably the next 10, if the 1st years no claims really is meant to be the "biggest" discount

To be honest, it might not matter. I think i'm gonna get rid of my car and just hire one at the weekend. Much, MUCH cheaper that way. No depreciation. No insurance. Better car.

bouncydog1

One thing the original poster has omitted to include is their age and driving experience which might mean that going forwards loadings for these factors are reduced, which will impact the premium overall.

Seems to be a lot of concentration on NCB which is not the only factor influencing pricing. Occupation and postcode also seem to have been forgotten together with vehicle use - practically impossible to comment unless all of these factors are included.

Dangermac

mikey72 wrote: »

Back into the usual arguements then.

Look at https://forums.moneysavingexpert.com/discussion/2706419

It's back to the smoke and mirrors again.
I will agree that insurers have changed, they have reduced the profits on underwriting, but increased the profit on all the other aspects of the business. Possibly because underwriting is one thing they actually subcontract, whereas if you have an accident, they sell your details to an acident management company, ker-ching!
change of address, ker-ching! change of car, ker-ching! someone backs into you, ker-ching!
They've gone from BA to easyjet.

Mike72 seems to be a mouthpiece for the anti-insurance-company campaign, whilst spouting complete drivel.

Fact: Consumerism has changed the face of Car/House Insurance - probably forever. The consumer has demanded cheaper premiums and wider cover - which has been delivered - because of financial capacity in the market.

However - because profits (if they exist at all) are wafer thin, in my opinion, insurers will stick to the letter of the contract when deciding whether to pay/not pay a claim. Whereas, 20 years ago, most insurers would normally be fairly magnanomous, and would look to the 'spirit of the cover' as opposed to the cold words.

Also, now that this financial capacity in the market (i.e plenty of competition) is starting to reduce, Mikey72 and the like, seem to think that the world is against them, and that insurers are coining it in.

Fact: Yes - insurers are now charging for many things that they never (generally) used to. Do I like/agree with this. No - definately not.

However, the FSA (who govern the industry) favours specific charging for things like duplicate documents etc, because the alternative (which I personally favour) is that everyone pays a few pennies more, meaning that the insurance company can make a fair return on the initial premium. Consumerism has also led us partly down this path also.


Fact: Insurance companies do not make mega profits on car insurance. Why do you think that so many companies are either withdrawing from the market on scaling back their financial capacity.



Mikey72 - I have never come accross such one-sided (and, frankly, inaccurate) posts. I should concentrate on your day job if I was you.

lisyloo

However, the FSA (who govern the industry) favours specific charging for things like duplicate documents etc, because the alternative (which I personally favour) is that everyone pays a few pennies more, meaning that the insurance company can make a fair return on the initial premium. Consumerism has also led us partly down this path also.

Personally I prefer the current model of making people pay for what they use.
I don't request duplicate documents, cancellations or amendments and don' see why I should subsidise others. I might agree that we should all sibsidise people who die or suffer an illness on compassionate grounds, but people who consciously decide to move house or change car or lose their documents have no right to expect to be subsidised.

We don't get to decide the pricing model, but I have yet to hear a good argument as to why careful and stable customers should subsidise the others.

Mike72 seems to be a mouthpiece for the anti-insurance-company campaign

If I was running a campaign I seriously wouldn't be wasting my time here.

Dangermac

lisyloo wrote: »

Personally I prefer the current model of making people pay for what they use.
I don't request duplicate documents, cancellations or amendments and don' see why I should subsidise others. I might agree that we should all sibsidise people who die or suffer an illness on compassionate grounds, but people who consciously decide to move house or change car or lose their documents have no right to expect to be subsidised.

We don't get to decide the pricing model, but I have yet to hear a good argument as to why careful and stable customers should subsidise the others.



If I was running a campaign I seriously wouldn't be wasting my time here.

Only my opinion but:

- People do change their car from time to time
- People do move home from time to time
- People get married from time to time
- People change job from time to time

I feel that subtle changes (like the above) should not incur specific additional costs (unless there is a change to the cover / risk - i.e higher/lower risk address)

lisyloo

I can see that.
I would be happy with it working like that.

The problem is that many people demand the cheapest product and due to competition that leads to everything that's optional being stripped out. Consumers have got what they demanded - rock bottom prices - unfortunately to get there in some cases they get rock bottom cover & service.

Dangermac

lisyloo wrote: »

I can see that.
I would be happy with it working like that.

The problem is that many people demand the cheapest product and due to competition that leads to everything that's optional being stripped out. Consumers have got what they demanded - rock bottom prices - unfortunately to get there in some cases they get rock bottom cover & service.

Exactly. Couldnt agree more.