Mergers and acquisitions expected in the UK insurance sector
Over the last few days the ongoing dispute between Aviva and the RSA has dominated the headlines and many people believe that the insurance industry is very much primed for a number of mergers and acquisitions in the short to medium term. Royal Bank of Scotland is already under pressure from the European Union to dispose of its Direct Line and Churchill insurance operations in the short to medium term. These operations are certain to attract the attention of insurers in the UK and while we are unlikely to see any aggressive bidding due to the economic environment there is no doubt there will be a number of parties interested.
This is just the tip of the iceberg with regards to the UK insurance sector where the Resolution Group is planning to create a business worth in excess of £10 billion. We could also see some of the major insurance companies in the UK looking to merge their operations as a means of streamlining the cost for the future and enabling them to focus on new markets and new opportunities in the medium to longer term. The markets are currently awash with rumours and counter rumours with some very interesting suggestions in the pipeline!
The long-term cost of DIY
As more and more people in UK decide to stay put in their current homes until the market improves we are starting to see significant interest in the DIY market. However, research by Sainsbury's Home Insurance has shown up significant concerns which homeowners need to address if they are looking to go down the DIY route. It appears as though many people in the UK are carrying out DIY work in high r...Read More
Short-term reduction in car insurance premiums
In a surprising development the AA has revealed a fall of 3.2% in car insurance premiums in the first three months of 2010. This compares to an increase of 18.7% during the whole of 2009 with the average cost of comprehensive car insurance cover now standing at £968. So what does the rest of 2010 hold for the UK car insurance industry? Unfortunately, UK motorists are likely to be hit with an i...Read More
Insurance fraud hits record high
UK insurance fraud hit £840 million last year in the UK which was a 14% increase on the figure for 2008. While it is no surprise to see insurance fraud increase during recessionary periods, the amount of money involved is enormous and has surprised many experts. So what impact will it have upon the UK insurance market? The simple fact is that the more insurance fraud that occurs in the UK the...Read More
Competition Commission seeks to increase PPI availability
The Competition Commission has today issued a ruling on payment protection insurance (PPI) and its availability when acquiring personal loans, mortgages and credit cards. Initially there had been moves to ban PPI at the point-of-sale for the above financial instruments and allow customers to shop around for the best PPI option available. However, Barclays Bank took the issue to court and the Compe...Read More
MPs Call For Changes To Use Of Insurance Surpluses
While it has been a bone of contention for many years it seems as though the subject of so called orphan funds may soon be cleared up with news that MPs are set to press the FSA to introduce strict new guidelines. Orphan funds are basically funds which have been set aside to smooth the natural economic cycle of returns and cover any claims. Many UK insurers now have funds in the billions of poun...Read More