Ban insurance companies petition

antrobus

qa104 wrote: »

I have set up a petition - Ban insurance companies from raising prices for non fault claims and misusing the database CUE. Need 5 supporters to make the link go live as im a new user on here and cant post links. please message me
sign the petition

With one no-fault claim, approximately 60% of insurers applied no loading to the premium at all, around 35% applied an average loading of 5% and approximately 5% applied an average loading of about 30%.


https://www.theguardian.com/money/2014/apr/16/no-fault-claims-car-insurance-aa


Would it not be easier just to insure with the 60% rather than the 5%?

mattk_180

antrobus wrote: »

With one no-fault claim, approximately 60% of insurers applied no loading to the premium at all, around 35% applied an average loading of 5% and approximately 5% applied an average loading of about 30%.


https://www.theguardian.com/money/2014/apr/16/no-fault-claims-car-insurance-aa


Would it not be easier just to insure with the 60% rather than the 5%?

The 5% are probably companies that consumers tend to avoid anyway.

teddysmum

I can't believe that insurers make little money. If that was the case, they wouldn't bother staying in business.


We were peeved when out insurer wanted to add 25% to the premium after I had a no fault accident, costing the insurers neither money nor time. (No way to avoid an accident where you are correctly positioned at a junction, waiting for traffic to pass and someone rams into the back of you).


However, my husband objected on the above ground and they agreed to just £5, which was ok as the premium was comparatively still good.

rudekid48

teddysmum wrote: »

I can't believe that insurers make little money. If that was the case, they wouldn't bother staying in business.


We were peeved when out insurer wanted to add 25% to the premium after I had a no fault accident, costing the insurers neither money nor time. (No way to avoid an accident where you are correctly positioned at a junction, waiting for traffic to pass and someone rams into the back of you).


However, my husband objected on the above ground and they agreed to just £5, which was ok as the premium was comparatively still good.

For context..

in 2015 there were 934 Insurers trading in the UK (340 of which were UK Authorised).

Of these less than 100 offer motor insurance - but let's call it a round 100 for illustration.

In 2015 the combined motor insurance industry made an operating profit of £33 million.

That was the first time since 1994 that the combined motor insurance industry had made any profit.

Not every one of the illustrative 100 companies made a profit, but let's pretend that they did - this would mean an average annual profit of £330,000.

For an industry that employs 10'000's of people and has a customer base of circa 25 million, that is hardly a great return.

There are many myths surrounding motor insurance and mega-profits is probably top of the list.

Incidentally, during the same period the combined home insurance industry made a loss of approx. £22 million.

There are many faults with the industry, but profiteering is not one of them.

dunstonh

I can't believe that insurers make little money. If that was the case, they wouldn't bother staying in business.

For a good many years, the actual underwriting of car insurance hasn't been profitable. However, the sale of car insurance has been. The problem is that the profits on the sale side tend not to be with the insurers. This is why some insurers have been looking to take back their distribution.

OnanTheBarbarian

The insurers are having ir off and it is only going to get better for them if the personal injury reforms go through as presented.

paddyandstumpy

OnanTheBarbarian wrote: »

The insurers are having ir off and it is only going to get better for them if the personal injury reforms go through as presented.

Have you not read preceding posts?

Less than 100 insurers made a combined profit of £33m. This is the first time they've recorded profit in 22 years.

Yet they are having "ir" off... :T

OnanTheBarbarian

Their annual results and combined operating ratios would suggest otherwise. But keep soaking up the media headlines if that makes you feel informed

paddyandstumpy

Most insurers make a profit by investing the premiums paid and getting a return that way. That's something anyone can do, you can't seriously begrudge insurers for doing that?!

Underwriting profit is the difference between premiums in and claims cost out, that's normally a very small margin.

As previously posted there are a lot of insurers al fighting for the same business, a competitive market keeps premiums honest.

Reckless_Saving

CUE isn't a claim database, it's an incident database doesn't matter if it doesn't materialise into a claim or is not your fault, it's a statement of fact that an incident has taken place and notified to the insurer.

All insurers are chasing good risks, most don't get them, always shop around.