Want to know the REAL reason why your car insurance premium has gone up??

raskazz

mikey72 wrote: »

I don't need to focus on just the underwriting aspect, I'll just quote Aviva for their view of their results, which even they think are acceptable.

"Our sophisticated pricing enables us to target the right price for
the right risk. In personal motor we have seen rating increases of
25% in 2010 building on our early action in previous years to

respond to rising bodily injury claims inflation."

And? You can put 30% increases through but if you're running at a 130% COR then you will still not make any money, so that sentence means nothing if you're discussing the bottom line.

mikey72 wrote: »

Brit insurance, £81.6m profit wasn't enough for their business model, so they're focusing on commercial.

How much of that profit was from private motor do you think?

mikey72 wrote: »

I'm sure the rest are a similar story.

Why not read the links end educate yourself then?

To be honest your continued fixation with Admiral and steadfast refusal to accept reality is seeming more and more like genuine mental illness with each passing hour.

mikey72

raskazz wrote: »

:rotfl::rotfl:

Possibly the most hilariously stupid "analogy" I have ever read.

If Tesco made a loss of £1.22 on every £1 of apples they sold (ignoring the loss leader element) then they would either (i) increase the price of apples or (ii) stop selling apples.

This is exactly what the motor insurance market has done - premiums have increased and some insurers have stopped selling motor.

Either you are really slow, or you do believe underwriting is truely the only aspect of insurance.
I pay for insurance.
The companies are making record profits.
You always post one very small aspect of the business, and expect to fool the rest of us into ignoring all the other aspects, which are a profit making part of the service we pay for.
If you would like to start a company which only has a charge for underwriting, and makes no charge for anything else, feel free to come back and quote for the rest of us then
Until then, read the figures, and give it a rest for a bit.

raskazz

mikey72 wrote: »

The companies are making record profits.

With respect, I have put up links so I believe that the relevant term would be that it is high time for you to "put up or shut up". Please link to verifiable data which shows a raft of insurance companies making profit, let alone supernormal profit, from UK motor insurance (not brokers as they are not risk-carrying). And leave the Admiral figures that you have probably posted nearly a hundred times before, we've all seen those.

Posting up overall company profits from composites is not relevant as that profit will include profits from classes of business other than motor.

Now why don't you go and read some figures instead of sticking your fingers in your ears and shutting your eyes to reality.

mikey72

raskazz wrote: »

With respect, I have put up links so I believe that the relevant term would be that it is high time for you to "put up or shut up". Please link to verifiable data which shows a raft of insurance companies making profit, let alone supernormal profit, from UK motor insurance. And leave the Admiral figures that you have probably posted nearly a hundred times before, we've all seen those.

Posting up overall company profits from composites is not relevant as that profit will include profits from classes of business other than motor.

Now why don't you go and read some figures instead of sticking your fingers in your ears and shutting your eyes to reality.

I think we'll let the rest of the forum look at the figures we've both put up, and the comments made by the directors of the companies.
All show enough profits to suggest the "poor" insurance companies can survive, and indeed as you point out with Brit insurance, even cherry pick to focus on maximising profits in the sector without too much hard work.

raskazz

mikey72 wrote: »

I think we'll let the rest of the forum look at the figures we've both put up, and the comments made by the directors of the companies.
All show enough profits to suggest the "poor" insurance companies can survive, and indeed as you point out with Brit insurance, even cherry pick to focus on maximising profits in the sector without too much hard work.

So in other words you have nothing in your locker at all and so are going to pretend that you are choosing to not put up links rather than, as is actually the case, being unable to find them because they don't exist.

Again, you spectacularly miss the point that a composite insurer can survive for a certain amount of time despite losses in motor as it makes profit from other lines. But this is not sustainable over the medium term and so rates in motor do have to be increased eventually. Are you seriously trying to suggest that insurers should plough ever more subsidy into motor from other areas such as commercial insurance, household insurance etc? Why should my mother who doesn't drive pay a higher home insurance premium to subsidise loss-making motor business?

Again: Please link to verifiable data which shows a raft of insurance companies making profit, let alone supernormal profit, from UK motor insurance (not brokers as they are not risk-carrying). Until then you are just producing hot air.

mikey72

No.
You should stop blustering about one small aspect of the figures you have posted, which I am quite happy to use, unless you want me to repeat your links for you.
Apart from the one on NIG, as they appear to be making loss still, you can use that one, even though you have said they no longer offer insurance.
As part of RBS, you wouldn't expect a profit really though.
But then again;
RBS is targeting annual operating profits of about £300m this year at the division, which it was told to sell by the European Commission as a penalty for receiving state aid."

http://www.ft.com/cms/s/0/31594750-4052-11e0-9140-00144feabdc0,s01=1.html#axzz1GKZyC47w

Kilty_2

mikey72 wrote: »

Well if you look at the track record of Malcolm Offord, the first director in the list of Drive Assist Holdings Ltd,
"He has been responsible for originating and exiting the successful Charterhouse investments in Tussauds, Avent and Saga, and was a non-executive director of Coral Eurobet. Since then, he has originated and led the transaction teams for Drive Assist UK, Acromas Holdings (the new company created following the £6.15bn merger of Saga and The AA in July 2007), Giles Insurance Brokers Limited and most recently, in June 2009, the £550 million MBO of Wood Mackenzie"

Big interests in insurance then. Just as expected.

raskazz

mikey72 wrote: »

No.
You should stop blustering about one small aspect of the figures you have posted, which I am quite happy to use, unless you want me to repeat your links for you.
Apart from the one on NIG, as they appear to be making loss still, you can use that one, even though you have said they no longer offer insurance.
As part of RBS, you wouldn't expect a profit really though.
But then again;
RBS is targeting annual operating profits of about £300m this year at the division, which it was told to sell by the European Commission as a penalty for receiving state aid."

http://www.ft.com/cms/s/0/31594750-4052-11e0-9140-00144feabdc0,s01=1.html#axzz1GKZyC47w

Did you actually read my post above regarding cross-subsidy?

I'll re-post the relevant questions which you have conveniently ignored:

Are you seriously trying to suggest that insurers should plough ever more subsidy into motor from other areas such as commercial insurance, household insurance etc? Why should my mother who doesn't drive pay a higher home insurance premium to subsidise loss-making motor business?

Please link to verifiable data which shows a raft of insurance companies making profit, let alone supernormal profit, from UK motor insurance (not brokers as they are not risk-carrying). Until then you are just producing hot air.

PS I did note state that NIG "no longer offered insurance" - I said they no longer offer private motor insurance.

Edited to add: Thank you for making me discover another link with which to rubbish your outlandish claims about the profitability of the UK motor market:

http://www.investors.rbs.com/common/download/download.cfm?companyid=RBS&fileid=394510&filekey=3015c67f-3d7a-4446-832b-00bbb871b1c9&filename=divperformance.xls

RBS Insurance combined operating ratio of 111.9% Q1 10 and 128.7% Q2 10.

http://www.hpcgroup.co.uk/newsroom/headlines/headline/rbs-insurance-records-large-motor-losses-in-interim-results

(On motor) "RBSI has recorded a combined ratio of 120.2% which is a 25 percentage points worse figure year on year.
11.9 points of this ratio derived from increased bodily injury claims relating to prior years"

dacouch

Kilty wrote: »

Big interests in insurance then. Just as expected.

He runs a venture capital company.

The infamous Steven Binch set up Drive Assist

mikey72

dacouch wrote: »

He runs a venture capital company.

The infamous Steven Binch set up Drive Assist

And who's another one of the board members?

Cees Schrauwers of Brit Insurance Holdings N.V.

company as mentioned by Raskazz before.
If that's not enough.

"Cees served as Managing Director of Aviva International and Managing Director of CGU Insurance. Dr. Schrauwers also held a number of senior positions in Commercial Union covering both the general insurance and life sectors. Prior to this he was a partner with Coopers & Lybrand in charge of insurance consultancy. Dr. Schrauwers has some 30 years industry experience. He serves as the Chairman of Alio Limited, Drive Assist ... Holdings Limited and Drive Assist UK Limited. He has been Non-executive director of Brit Insurance Limited and Brit Syndicates Limited since 2007"