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?
Legal & General cut terminal bonus rates
In a move which was to be expected but is still very painful after the introduction of the with-profits exit fee adjustments, it has been revealed that Legal & General will be cutting terminal bonus rates on with profits funds by between 5 and 9 percent as a consequence of the fall in investment markets. It seems that after a period of calm reflection the insurance industry is now waking...
ABI Talks Tough Over Flood Insurance
As more and more UK home owners become acutely aware of the constant risk of flooding, it seem as though last years £3 billion clean up bill was too much for the insurance companies to stomach. The Association of British Insurers (ABI) has come out fighting for its members with claims that more than half a million homes in the UK are at risk of flooding. The ABI is refusing to advise members to...Read More
Brit Insurance goes Dutch
Lloyd's of London insurance group Brit Insurance has moved its head office to Holland in another bitter blow for the UK business sector. This is the latest in a long line of UK companies which have relocated overseas as the tax regime in the UK becomes heavier and heavier. Just yesterday we wrote about the retail sector and the significant tax increases expected in the short term although this is...Read More
Is the insurance sector next for a fall?
While we have heard much about the performance of the leading UK banks over the last few days there has been little mention of the problems facing insurance companies over the last few months and the challenges which lay ahead. Today's news that US insurance giant AIG is in trouble and had to carryout a fire sale $20 billion asset disposal to keep the group afloat has brought the sector to the at...Read More
UK parents warned on fronting car insurance for children
The Motor Insurers Bureau has issued a very strong warning to parents in the UK who are directly involved in the insurance of their children's cars by basically fronting an insurance policy by claiming to be the main driver. While for many people this can lead to significant savings for their children it is actually a form of car insurance fraud. Many people are totally unaware that the action...Read More