UK insurance companies take a hit
Lloyd's of London has today confirmed that a number of natural disasters as well as the BP oil rig debacle in the Gulf of Mexico have resulted in significant losses for insurers around the world. UK insurance companies have taken their fair share of multimillion pound hits over the last 12 months although many believe that ultimately an increase in regulations and the need to tighten current insurance policies could result in more business for the UK insurance sector in due course.
When you take into account the economic downturn over the last three or four years, what seems to be natural disaster after natural disaster and a number of man-made disasters, there is no doubt that the insurance sector has been under pressure. However, ultimately it is always the customer which bails out the insurance sector and this time will be no different with corporate premiums likely to increase significantly in the short to medium term.
Insurance premiums for UK consumers are also set to increase in the short to medium term, as the long-term trend continues, with car insurance one of the major issues amongst the UK public. It seems that legitimate and fully insured car drivers are paying the costs associated with uninsured drivers but is this really fair?
George Osborne announces partial reduction in planned national insurance rise
George Osborne yesterday grabbed the moral high ground in the battle for the hearts and minds of UK workers with an announcement that the Conservative party would partially reduce the planned national insurance rise announced by the Labour government. George Osborne has guaranteed there will be no national insurance rise for those earning under £35,000 a year in the UK and while this will cost th...Read More
Lloyds bank looking to pull out of government asset protection scheme
Lloyds bank is today in talks with Treasury ministers and FSA regulators as the company looks to withdraw or reduce its proposed exposure to the government asset protection scheme. This is the scheme which would see Lloyds bank insure £260 billion of risky debt which is currently untradeable, therefore reducing any further downside in the short term. However, the company has been struggling to ra...Read More
Legal and General attracts short selling
Continued speculation that Legal and General will need to tap the market for additional funds in the short term has further undermined the shares today. Despite assurances from the group that it has in excess of £1.6 billion available to cover any potential shortfall, as well as news that the credit default assumption has been increased by £650 million, this has done nothing to calm market nerve...Read More
AA travel insurance backtracks on volcanic ash promise
AA travel insurance, an offshoot of the well-known motoring operation, has today reneged on a promise to cover the costs of travellers caught up in the volcanic ash saga. Initially the company had promised to cover additional travel and hotel expenses for customers with AA travel insurance but this promise has been withdrawn after the company's insurance underwriters refused to pay out. So desp...Read More
Zurich Financial Services To Cut 700-900 Jobs In The UK
Hot on the heels of the announcement of a possible 1,800 job cuts by UK rival Aviva, the news of more job losses as Zurich Financial Services is not what the sector or the economy needed to hear. While the numbers are significantly less than those of Aviva, there seems to be a worrying trend starting in the financial sector.
The move was announced as part of an ongoing financial re...