JoelP
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| posted on 13/5/04 at 07:06 PM |
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quote:
Overall this will be another inflationary factor on private motor insurance rates at a time when the industry is still coming to terms with
the most recent statistics on uninsured drivers and personal injury claims. The ABI estimate that the private motor insurance industry in the UK is
currently running at a loss ratio of 160%, that is, £1.60 paid in claim for every £1.00 received in premium. Rates will continue to rise and you
should concentrate on obtaining every possible discount to keep your own policy realistic. We would advise you to consider the following
source:
http://www.richardkeen.co.uk/news.html
halfway down.
i said apparently, and this is apparently again, but thats what it says there.
[Edited on 13/5/04 by JoelP]
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Peteff
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| posted on 13/5/04 at 10:48 PM |
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car insurance companies run at a loss apparently, proped up by other insurance lines.
It doesn't mention other insurance propping up motor insurance in that article and it doesn't say how long it has been running at a loss.
It could be for the last two weeks. If they are paying out 60% more than they are taking in be sure that next time you insure it will cost you 60%
more than you are paying now. They have a captive market and they know it.
yours, Pete
I went into the RSPCA office the other day. It was so small you could hardly swing a cat in there.
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Cita
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| posted on 14/5/04 at 05:27 AM |
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I have to agree with Peteff,it's hard to believe that any company would go on doing buisiness when they loose money.
If i must believe our bank press reports than there is'nt hardly any bank that makes money!They all loose money.
At least SOMEBODY must get money.
On the other hand...a 20% drop compared to your previous profit can also be considered as a loss.
Ask yourself how long your boss will keep you when you are the guy who's costing the firm more than you earn for him.I guess this can be counted
in hours instead of months
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britishtrident
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| posted on 14/5/04 at 07:39 AM |
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Major cause of expensive insurance claims is car theft, in the old days if a car was stolen you might get it back some times even undamaged, these
days it will be either burnt out the "joy-riders" usually having caused loss and damage to other vehicles property or people along the
way or will have been sold to the ringers.
[Edited on 14/5/04 by britishtrident]
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JoelP
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| posted on 14/5/04 at 07:39 AM |
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well, of course they dont intentionally run at a loss. If they were(running at a loss), they would be constantly putting premiums up, to try and stay
in front of the dreaded payouts. Oh yes, they are arent they...
[Edited on 14/5/04 by JoelP]
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stephen_gusterson
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| posted on 14/5/04 at 08:38 AM |
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i have another theory why insurance is so expensive - perhaps mark allanson might wanna stick his neck out on this...........
its stuff getting repaired that didnt need to be.
When I whaked my mazda gainst a kerb and needed new front suspension bits and a new alloy , they replaced stuff that had been normal wear and tear -
like the 400 quid each alloy on the back, that had slight scuffing from kerbs.
I told the insurance co, and they didnt care a crap.
Then there is stuff like the windscreen for my wifes new megane..... 895 friggin quid....just for a bit of glass!!!!
atb
stev
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JoelP
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| posted on 14/5/04 at 08:48 AM |
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probably true steve, i think it is this combined with the constant increase in claims/compensation which is resulting in spiraling payouts, and the
rising premiums simply not going up fast enough to keep pace. Hence the alleged 160% difference. Undoubtedly they will keep raising premiums until
they feel they have got a suitable future-proof profit margin.
Why do people find it so hard to believe that it is possible for rising costs to spiral above revenue?
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Peteff
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| posted on 14/5/04 at 10:06 AM |
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I had a new windscreen a few years back and when I asked the receptionist how much she asked me if it was an insurance job. It wasn't and I was
quoted £67. The price through insurance was £130ish. I paid the £67 to save a £50 excess and loss of no claims. I now pay to maintain my no claims so
it would save me £17 on that and cost them £80 to have it done at the full price and if it costs me £30 a year to cover the no claims it will take
them 3 years to recoup that money. About 4 years ago I had my car stolen and it wasn't recovered. It was only a cheap Clio but we loved it. The
insurance paid me £1400 for it and I was happy with that but it was my first claim in 17 years. They make money on me so who are they losing on?
yours, Pete
I went into the RSPCA office the other day. It was so small you could hardly swing a cat in there.
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stephen_gusterson
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| posted on 14/5/04 at 10:38 AM |
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It will take my wifes insureres 3 years to get the screen money back. and it doesnt even affect her no claims.
insurance companies have shareholders. They are also backed by lloyds, which itself is backed by individuals that take on unlimited liability for a
share of any profits.
if the ins co were losing, their shares would be shyte, and the lloyds names would all get out of the market.
ins co invest their income on the stock market, bonds, etc, or lend it out ie banks. that way your premium works for them. dont think they lose 60% or
make it either in speculation
atb
steve
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petescamel
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| posted on 14/5/04 at 11:25 AM |
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quote:
Originally posted by stephen_gusterson
and the lloyds names would all get out of the market.
steve
they can't its a complete tie in the only way out is to sell your name to some one else. friend was a name and had 17 years of good returns
then the poo hit and it nearly cost him his house, bussiness etc.
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