Cartel?

Imperial926

Our LV annual multi-trip cost for my wife and myself has increased from £185 to over £295 with no changes to our medical circumstances or other policy elements. I look around and the prices from other companies all seem very similar. There has been some suggestion that the increases have been engineered to recover lost profits and I notice something similar happening with car insurance. Is this just a baseless conspiracy or is the customer being ripped off?

These dramatic insurance increases are surely going to affect the economy as a whole. With so much money going in this direction surely people will be looking to reduce their spending in other areas.

MattMattMattUK

Imperial926 said:

Our LV annual multi-trip cost for my wife and myself has increased from £185 to over £295 with no changes to our medical circumstances or other policy elements. I look around and the prices from other companies all seem very similar. There has been some suggestion that the increases have been engineered to recover lost profits and I notice something similar happening with car insurance. Is this just a baseless conspiracy or is the customer being ripped off?

Insurance companies, the entire industry is attempting to return to profitability, that is not ripping people off, it is not a cartel and it is not a conspiracy.

Imperial926 said:

These dramatic insurance increases are surely going to affect the economy as a whole. With so much money going in this direction surely people will be looking to reduce their spending in other areas.

It will have a minor impact on the economy, all tied in to the overall cost of inflation. Currently the biggest cost increase is in mortgages and rent, everything else is dwarfed by that. 

Imperial926

MattMattMattUK said:

That is not ripping people off, it is not a cartel and it is not a conspiracy.

Thanks Matt. I have now called LV and Churchill and received a quote from Abta. These are the ones that MSE recommend for my age group. Having spoken to call handlers at some length I understand what's happening a little better now.
My quotes ended up ranging from £303 to over £500 for similar annual cover, to include winter sports. 
I am now going with an 'essential only' policy with LV that will get me down to £202. I appreciate your comments although these are the biggest increases in such products I have seen. Can't wait to see what house and car policies increases will amount to.

la531983

Imperial926 said:

MattMattMattUK said:

That is not ripping people off, it is not a cartel and it is not a conspiracy.

Can't wait to see what house and car policies increases will amount to.

You might want to sit down when you sort that out. With a stiff drink.

Imperial926

You might want to sit down when you sort that out. With a stiff drink.

It poses many questions! Someone, somewhere is charging far more for their services than the previous year. People must also be claiming more perhaps?

Maybe the answer is for me just to double the charges in my own line of work! Come to think of it I will do that right now! There we go - problem solved!

Hoenir

Imperial926 said:

These dramatic insurance increases are surely going to affect the economy as a whole. With so much money going in this direction surely people will be looking to reduce their spending in other areas.

If the standard of driving in our locality continues. There's no likelihood of car insurance costs falling anytime soon. 

DullGreyGuy

You have to remember also that insurers buy reinsurance and whilst some will claim to have great relationships with their reinsurers and out do the market the reality is most will be buying it at very similar rate from the same pool of reinsurers and so that will in part drive the price.

Bicycleman22

Wages up, heating costs for offices up, higher air fares and holiday costs up mean cancellation costs up, medical costs up and repatriariation flights up.... 

Imperial926

I'm hearing things are not as bad in France. I will ask for figures from my friend who has moved to Brittany from West Dorset!

eskbanker

Imperial926 said:

I'm hearing things are not as bad in France. I will ask for figures from my friend who has moved to Brittany from West Dorset!

Will that help you?  Emigrating would seem to be something of an overreaction to an extra hundred quid on an annual travel insurance premium!

Imperial926

eskbanker said:

Will that help you?  Emigrating would seem to be something of an overreaction to an extra hundred quid on an annual travel insurance premium!

It will be all insurances and, now as a pensioner, only working part time I am unable to increase the generation of income as I might have done earlier in my life. Admittedly, my profession may seem a little unusual here. I am a musician so I get paid to make music and I still teach, but only at home.

This is perhaps not the place to set out a political rant but conditions for the work that both my wife and myself undertake have become so unfavourable that I applied for and was successful in gaining an Irish passport.

We are acutely aware of the mixed nature of emigration but my friends in Brittany seem to be flourishing both financially and culturally.