Young drivers could become 'uninsurable'
Young drivers could be priced out of the insurance market if action is not taken to reduce the number of deaths and injuries caused by motorists aged under-25, one insurer has warned.Speaking following the release of a new education pack aimed at teaching school pupils about the impact of dangerous driving, Co-operative Insurance (CIS) warned that such drivers were responsible for causing 35 deaths and serious injuries each day, with premiums for youngsters subsequently rising as a result.According to the insurer, the cost of insuring young motorists has jumped by 22 per cent over the past three years, compared to just two per cent for all other drivers.CIS director of general insurance, David Neave, stressed that if the trend continued, a "whole generation" of drivers could become uninsurable."If this trend continues many young car owners will be unable to afford insurance and that will inevitably lead to a rise in the number of uninsured motorists on the roads and that would have major consequences for us all," he warned."The impact of serious road traffic crashes not only affects people's lives but also has a considerable affect on future premium levels," Mr Neave added, stressing that the industry had a "duty" to take action in order improve safety and to make insurance premiums more affordable for young, inexperienced drivers.CIS, which has teamed up with the road safety charity Brake to launch an education pack based on its earlier DVD, Too Young to Die, said that the new resource would help teachers run lessons for 15 to 21-year-olds, encouraging them to act responsibly on the roads.The initiative follows last month's call by the Association of British Insurers (ABI) for learner drivers to be given a minimum one-year 'learning period' before gaining their license in order to cut the number of road deaths.Giving evidence to parliament's transport select committee, ABI director of general insurance Nick Starling also argued that young, newly-qualified drivers should be subject to limits in regard to the number of passengers they are allowed to carry.
Public-sector cuts hit care home sector
Southern Cross, the UK's largest care home operator, has today issued a profits warning suggesting that the company will miss full-year targets because of a reduction in spending by local authorities. The company operates 730 care homes throughout the UK providing over 37,000 beds although total occupancy rates have fallen from 87.5% last year to 85.4%. Is this the start of a significant reduction...Read More
Will an increase in VAT kill the recovery?
As the UK government looks set to push the VAT level back to 17.5% from the reduced 15% rate there are concerns that the ongoing recovery in the UK economy could be strangled at source. There are real concerns about the financial stability of companies on the high Street and the fact that consumer spending has fluctuated enormously over the last few months with more and more consumers looking to t...Read More
Norwich Union disappears and Aviva takes over
While effectively the name of Norwich Union began to disappear many years ago, today marks a definitive point in the history of this well-known insurance company, which will disappear altogether. Having operated as a subsidiary of Aviva, the former CGNU insurance conglomerate, Norwich Union will be no more after today as the rebranding exercise reaches the end of the road.
British Airways announces £50 million quarterly loss
In the three months to December 2009 British Airways lost £50 million which is very much less than many analysts had been expecting. The £50 million loss compares to a £122 million loss in the same period for 2008 although the pre-tax loss for the nine months ended December 2009 rose from £70 million in the corresponding period to £342 million. As we have mentioned on numerous occasions, B...Read More
Cut more energy bills, regulator says
Britain's gas and electricity providers should continue to cut unnecessary costs from customer bills, Ofgem said today.The regulator made the comments in the initial findings of its billing practices investigation - which revealed that some householders were paying too much for their energy through no fault of their own.For example, some who get their fuel through prepayment meters are paying more...Read More