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?
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.
Does my car insurance cover me to drive somebody else's car?
Car insurance is often a very grey area because of the different variations available and different terms and conditions which are attached to the various insurance companies in the UK. A number of people have automatically assumed that if they are insured under a comprehensive plan then they will be covered on a comprehensive basis for driving somebody else's car. However, you may need to think a...Read More
Lloyd's of London unveils profits slump
Lloyd's of London, the largest insurance market in the world, has today reported a slump in first-half profits from £1.3 billion in the same period last year to £628 million. It seems a number of catastrophes have come together to create another nightmare scenario with the Chilean earthquake, BP oil disaster and a number of other issues coming to the fore. These first-half catastrophes are th...Read More
Why has Equitable Life taken so long to sort out?
The embers of the former financial giant in the UK, Equitable Life, have been well and truly doused but there is still much anger with regards to the 1.5 million people who were impacted by the company's inability to cover its future liabilities. The company nearly collapsed after losing a court case during which it attempted to reduce liabilities but failed. However, it is estimated that a large...Read More
Moneyfacts website defends PPI
As Payment Protection Insurance (PPI) came under fire last month from the Office of Fair Trading (OFT) for lack of clarity, Moneyfacts has defended the scheme as "an invaluable safety net".PPI covers borrowers who find it difficult to manage loan and card repayments because of long-term illness or unemployment.The OFT demanded that the Competition Commission launch an investigation following compl...Read More