Admiral Renewal

Car_54

Quentin wrote: »

No they haven't - as explained, they use the premiums of everyone to pay claims - only what's left (if anything) is profit!

BUT whatever profit they make will be £540 greater than it would have been otherwise. Their premium income has increased by £540, and their claims costs have not.

Strider590

Go elsewhere, I was with Admiral for 15 years, until they started taking the proverbial with my renewals, the Admiral group are 4 or 5 insurers, I used to get quotes from those using confused.com (website owned by Admiral) and then go back to Admiral for a price match, by playing them off against their own sister companies, but then suddenly I couldn't get quotes from those and my premium increased by £350 for no reason at all, I got quotes from other insurers, I called Admiral and I told them I was leaving, they wanted to try to beat my quote, I said "no, it's too late, I don't care what you quote me, you've taken the p!ss and now you've lost my custom".

bigadaj

Quentin wrote: »

No they haven't - as explained, they use the premiums of everyone to pay claims - only what's left (if anything) is profit!

It's a bit more complicated than that.

What typically happens is that premiums are taken in and claims paid out, these would generally match and the insurers would make money from investment returns and cash flow from the premiums prior to having to pay out.

Despite what many people might think insurance is very competitive and low margin.

Premiums are calculated from complicated formulae from huge amounts of data and statistics interested by highly qualified actuaries.

Or alternatively after a discussion one evening after a few drinks with an actuary I know, they undertake all these things and then check online and see what direct line are charging.

George_Michael

bigadaj wrote: »

Despite what many people might think insurance is very competitive and low margin.

I wish I owned a "low margin" company like Admiral insurance.
Turnover of just over £2 billion in 2015 and pre tax profits of £377 million. In fact, the company did so well that they gave shares worth £3600 to 8000 of their staff.

stator

George_Michael wrote: »

I wish I owned a "low margin" company like Admiral insurance.
Turnover of just over £2 billion in 2015 and pre tax profits of £377 million. In fact, the company did so well that they gave shares worth £3600 to 8000 of their staff.

Shows you how bad other insurance companies must be at pricing risk since Admiral are the cheapest provider for most people under 40

Ozzuk

I always get multiple quotes at renewal, places like the compare the market. Often Admiral (my current insurer) is still the cheapest. Every single time I've called them they have price matched, I've just given them the online reference. I have two polices, been a customer for as long as I can remember and have never had an issue with renewal.

The last time they actually dropped the price further as they noticed something I didn't need. If they refuse, then just say you are leaving.

Car_54

George_Michael wrote: »

I wish I owned a "low margin" company like Admiral insurance.

Stop wishing. Buy some shares!

MEM62

Paradigm wrote: »

If there aren't any claims during the period they are insured then surely Admiral make £540 profit (minus admin costs)?

Errrr.... No. Because Admiral are a broker, not an underwriter.

dacouch

MEM62 wrote: »

Admiral are a broker, not an underwriter.

This is an alternative fact

kmb500

Quentin wrote: »

No they haven't - as explained, they use the premiums of everyone to pay claims - only what's left (if anything) is profit!

They are still profiting from that customer.


For instance, cinemas profit from the popcorn they sell, but they may not make profit overall.
Alternatively, Sony does not make profit from their playstation consoles, but still make profit overall.


youre using the same word in different contexts




OP do not expect to get Admiral to match that £540 for a new customer. these companies try to give you a cheap quote first year then bump up your premium at renewal. that's why you always look around elsewhere. and they are not so stupid as to think that the Mr Joe Bloggs who insures his AV65 TKG ford fiesta on January 1st, is not the same Joe Bloggs who ended his insurance on his AV65 TKG ford fiesta on 31 December.