Viewpoint
For You
Viewpoint Summer
- News summaries
- Will a crack in your windscreen dent your wallet?
- Fire hazards at home
- Ministry of Justice claims reforms
- 40th anniversary
- Life begins at 40.....
Premium price - is the cost of your insurance going up?
Insurers have been talking about premium increases in personal lines for some time now and, despite motor rates stalling in the first quarter of 2010, the increases have now materialised.
Capacity in the market had been credited with keeping premiums low but escalating claims costs have forced insurers to revisit their approach to pricing.
In motor, there has been a substantial rise in the average cost of third party damage claims and the frequency of bodily injury claims.
Fraudulent claims have also spiralled. General Insurance fraud could reach £2.5 billion in 2010 according to Experian, who cited unemployment due to the recession as one of the key drivers.
Insurers have spoken openly about their intention to increase premiums. Zurich in the UK is taking ‘strong rating action’ on personal lines motor business to counteract rising claims costs.
Many of the specialist high value home insurers including Hiscox, Sterling and Hardy have introduced premium increases to bring their accounts back to profitability.
Alan Stanford, Associate Director, outlines Perkins Slade's approach to the changing market,
'As the market hardens, it will become more important to take a proactive approach to risk management. At Perkins Slade we believe in the importance of building market knowledge and maintaining strong insurer relationships to ensure we can continue to secure specialist cover at competitive rates.'
Next Steps
To discuss the issues raised in this article or for further information, please speak to your usual Perkins Slade contact. Alternatively you can call 0121 698 8000 and ask to speak to a member of our Private Client team or email privateclients@perkins-slade.com
