Possible Rise in Motor Insurance Premiums
One industry commentator has warned that motor insurance premiums could rise by up to 20 per cent during 2010.
Paul Davies, writing for the Financial Times as the newspaper’s insurance correspondent, said “cut-throat online competition” and a greater volume of bodily injury claims had hit the industry hard.
He stated that since 2009 was one of the least profitable years on record for motor insurance providers, they may have no choice but to raise prices across the board.
According to figures from independent actuarial firm EMB, Mr. Davies reported that providers paid out £1.20 for every pound received in premiums, causing them to sustain significant losses over the course of the year.
“The number of claims has risen, encouraged by claims management companies and no-win, no-fee solicitors,” he reported.
Last month, professional services firm Deloitte also warned that insurance premiums could be set to rise – a situation which may encourage customers to seek the best van insurance offers available over the internet.