Should there be more regulation of the UK insurance market?
If there is one area of household expenses which attract controversy and complaints it has to be insurance, with car insurance one which is always to the forefront. More and more people in the UK are now claiming that despite having a clean driving licence and a no-claims bonus they continue to see significations and ongoing increases in their premiums. Should there be more regulation of the UK car insurance market especially?
It can sometimes be very difficult to understand how the insurance market works and indeed how the car insurance sector in particular operates. We hear news that legal drivers are made to pay the cost of illegal drivers in the UK with many of those even convicted escaping with relatively small fines. The insurance sector is in something of a no-win situation because the ever-growing increase in legal fees, to prosecute illegal drivers, is often borne by motorists who are fully covered by their insurance but if the insurance companies refuse to prosecute uninsured drivers what example does this give for the future?
Many in the UK believe that the courts should be tougher on uninsured drivers which would ultimately reduce the numbers and reduce the cost of prosecutions for the insurance industry as a whole.
Fat folk pay more premiums
Obese people may find that they are unable to purchase full life insurance policies or could find that their premiums are raised, according to the Association of British Insurers (ABI).Although losing weight could reduce premiums in the long-term, serious obesity, which constituted a massive health risk, if undisclosed at the point of application could lead to refusal when people attempt to make a...Read More
Life insurance shortfall revealed by Post Office
Around 75 per cent of people do not have life insurance, the Post Office said today.The organisation also released figures showing that the average Briton owns assets of £350,000 - around twice the level of the typical life insurance policy.When people who had not taken out the cover were asked why, one quarter said they could not afford it, while a further 18 per cent said that they did not thin...Read More
BCC demands increase in VAT not national insurance
The British Chamber of Commerce (BCC) has today pleaded with the UK government to increase VAT to 18.5% instead of increasing the rate of national insurance contributions. Figures from the BCC suggest that the scrapping of next year's national insurance contribution increase would benefit businesses by £5.1 billion while an increase of just 1% in the rate of VAT would bring in around £4.5 billio...Read More
UK insurance sector still under pressure
The UK insurance sector is again under pressure this morning with concerns that solvency levels will fall over the coming months and more and more companies will be forced to raise additional finance elsewhere. Investor appetite for fundraisings is running dangerously low and there are concerns about how and when additional funding could be raised. One option in traditional markets would have been...Read More
With profits bond holders feeling the pain
For many years the with profits bond market has been a godsend for investors in the UK, offering the opportunity to smooth out the ups and downs of the UK investment markets and ultimately crystallise a decent return at the end. However, while the likes of Engage Mutual and National Provident Life have already confirmed that terminal bonuses will be reduced to 0% we have today seen Phoenix join th...Read More