Insurance

[Kissu]

Just recieved my insurance quote for this year and although not the bargain of the century my insurance comes out at 12% more than last year,as I said not a bargain but seems reasonable in this economic climate.

[Boomer54]

50 minutes ago, Kissu said:

Just recieved my insurance quote for this year and although not the bargain of the century my insurance comes out at 12% more than last year,as I said not a bargain but seems reasonable in this economic climate.

You know I would really like to frame your statement above and send it to be hung in Threadneedle St on the walls of the BOE. A prime lesson in what happens to inflation expectations when you lose your grip on monetary supply. You see the problem "12%" and "reasonable" all in the same sentence. You clearly see no problem with a 12% hike in prices and that is not your fault at all. It's simply a function of awful monetary control.

[Moleman]

55 minutes ago, Kissu said:

Just recieved my insurance quote for this year and although not the bargain of the century my insurance comes out at 12% more than last year,as I said not a bargain but seems reasonable in this economic climate.

Ask yourself, do you think the insurance company would find a 12% increase in salary to all staff, reasonable in this economic climate?

[Tickedon]

1 hour ago, Moleman said:

Ask yourself, do you think the insurance company would find a 12% increase in salary to all staff, reasonable in this economic climate?

It’s got almost nothing to do with staff salaries - but you’ll find the National Living Wage went up 10% this April…

Insurance costs are rising because more cars are being written off and repairs are taking longer (so courtesy car etc. costs increase). If you look at any major insurers books - you’ll see they’ve typically paid out 20-45% more in handling claims than they took in via premiums last year. That obviously isn’t sustainable, and hence prices are going up. 

I know everyone would much prefer to blame some bogeyman or say someone is profiting at our expense, but that certainly isn’t the case for most insurers. 

[Moleman]

1 hour ago, Tickedon said:

It’s got almost nothing to do with staff salaries

Did not say it did!

Just asked if they or any other employer would find that reasonable? I think we know the answer.

Almost every industry and supplier have been increasing costs to the consumer at rates in excess of inflation, the Insurance industry more than most.

Yet, no thought is given to how the consumer will meet these excess costs. We are told to adjust our expectations. Perhaps the profit expectations should also be adjusted, in difficult economic times (downwards not up).

Nothing to do with the bogeyman, just Greed!

[steve2006]

What with increased repair costs and hire vehicles these insurance companies must be really struggling to survive!

[Tickedon]

Aviva are much bigger than just insurance…

Here’s the insurance section of the NFU mutual annual report… note that they had two recent years of premiums exceeding claims, and then three years where claims exceeded premiums…

Obviously covers more than just car insurance.

Sorry this doesn’t fit the “greed” narrative. 

 

[Moleman]

2 hours ago, Tickedon said:

Aviva are much bigger than just insurance…

Here’s the insurance section of the NFU mutual annual report… note that they had two recent years of premiums exceeding claims, and then three years where claims exceeded premiums…

Obviously covers more than just car insurance.

Sorry this doesn’t fit the “greed” narrative. 

 

Wow, talk about a blinkered view.

They actually made a group profit of £164M in 2023. 

 

[Moleman]

2 hours ago, Tickedon said:

Aviva are much bigger than just insurance…

Here’s the insurance section of the NFU mutual annual report… note that they had two recent years of premiums exceeding claims, and then three years where claims exceeded premiums…

Obviously covers more than just car insurance.

Sorry this doesn’t fit the “greed” narrative. 

 

The business' financial and strategic foundations remain sound and our 2023 solvency ratio of 218% (2022: 218%).

NFU statement.

For reference 100% is considered good.

[LenT]

10 hours ago, Kissu said:

Just recieved my insurance quote for this year and although not the bargain of the century my insurance comes out at 12% more than last year,as I said not a bargain but seems reasonable in this economic climate.

Not quite sure why Ian’s been generally jumped on for expressing this opinion.  Surely he may well regard a 12% increase as being ‘reasonable’ because:

a.  It’s not a huge hike relative to previous increases.

b.  It’s not exorbitant relative to the annual mileage he does.

c.  It’s commensurate with the perceived luxury of the vehicle he likes to drive.

d.  He can afford it!

I expect he would prefer it to be less, but his pragmatic approach no doubt suits him better than feeling he has to switch to a less appealing car in a lower insurance group, for example.

[Moleman]

1 minute ago, LenT said:

Not quite sure why Ian’s been generally jumped on for expressing this opinion.  Surely he may well regard a 12% increase as being ‘reasonable’ because:

a.  It’s not a huge hike relative to previous increases.

b.  It’s not exorbitant relative to the annual mileage he does.

c.  It’s commensurate with the perceived luxury of the vehicle he likes to drive.

d.  He can afford it!

I expect he would prefer it to be less, but his pragmatic approach no doubt suits him better than feeling he has to switch to a less appealing car in a lower insurance group, for example.

Fair point.

[Tickedon]

2 hours ago, Moleman said:

Wow, talk about a blinkered view.

They actually made a group profit of £164M in 2023. 

 

Yes, because of money they earned from other activities! Their year end profit & surplus would have doubled without the insurance loss. It is madness to think it’s sustainable for any organisation or business to keep running huge losses in an insurance business, with claims exceeding premiums paid. 

[GMB]

Maybe we need to take a look at why these costs and charges have increased so much.  More complex vehicles, more expensive unrepairable parts which need complete replacement, easily damaged batteries that need complete replacement, shortage of parts necessitating loan vehicles for extended times. Higher prices of vehicles and parts and labour charges. - Average new car 20yrs ago maybe £20K. Average new car today £40K  ???. Then we get the debatable esoteric stuff e.g. greedy shareholders/directors/ banks and so on.   The sad part is they still charge over the top prices for older cars where the above issues don't really apply so much i.e. underwriters lump us all together as dodgy electric Lexus owners. I haven't got one and I don't want one but I still pay the inflated price.   Tant pis!

[Tickedon]

50 minutes ago, GMB said:

Average new car 20yrs ago maybe £20K. Average new car today £40K  ???.
 

 The sad part is they still charge over the top prices for older cars where the above issues don't really apply so much i.e. underwriters lump us all together as dodgy electric Lexus owners. I haven't got one and I don't want one but I still pay the inflated price.   Tant pis!

Last new average car price I saw calculated and published was £39k so £40k is spot on. Not sure what it was 20 years ago but new car prices have definitely gone up by more than inflation- often linked to manufacturers having to include additional (expensive) kit and systems for road safety purposes, as mandated by EU and others. So we have much safer cars, but at a higher price.

The problem is while your older, simpler car may be less desired thieves or have lower repair costs, the insurer is still on the hook for if you hit a more expensive, modern car… as well as any personal injury costs.

We’re all therefore paying for the choices others are making when they purchase a car. But it would be very boring and disappointing if we all drove cheap Dacia Sandero’s…