Government cuts discount rate: Insurance sector says “crazy” decision will cost the industry billions February 27, 2017 The UK's insurers were left reeling this morning after the government announced changes to a key insurance sector discount rate, costing them hundreds of millions of pounds. Direct Line said annual profits for 2016 would be cut by up to £230m, while motor insurer Admiral estimated it will take a hit of up £100m and is to [...]
Britain’s insurers pay-out huge numbers to settle claims November 22, 2016 Britain's insurers are writing cheques for a whopping £131m a day according to one of the sector's main industry bodies. The Association of British Insurers (ABI) revealed the news today and while a large proportion of pay-outs are related to long-term savings and pensions, paying out for motoring claims represent a hefty chunk of what insurers must fork-out. Read [...]
Chancellor is “personally committed” to finding a solution after insurers call for discount rate law change this year March 1, 2017 Insurance leaders called on the government to set a new discount rate this year in an attempt to mitigate the catastrophic effects of its decision to cut the rate on Monday. Justice secretary Liz Truss surprised insurers by cutting the personal injury discount rate, which takes into account the long-term cost of care and loss of [...]
ABI warns chancellor George Osborne against further hikes to Insurance Premium Tax in Budget 2016 February 16, 2016 Any further rise in Insurance Premium Tax (IPT) would “hit millions of people doing the right thing”, the Association of British Insurers (ABI) has said. IPT affects 50m car, home, pet and private medical insurance policies. The insurance body has said the tax rise from six per cent to 9.5 per cent announced in the chancellor’s 2015 Summer Budget has [...]
Proof that it is always a struggle to second-guess the insurance market: home and contents premiums are going down August 18, 2016 It feels like only yesterday that we were treated to pictures of politicians wondering around looking rather uncomfortable in wellies and anoraks as they looked concerned at swollen rivers, flooded houses, football pitches and farmland. That prompted the launch of reinsurance scheme Flood Re and also gave George Osborne a good reason to put a further 0.5 per cent [...]
First anniversary of pension reforms shows we aren’t all cashing in and buying private jets August 15, 2016 Only a fraction of savers raided pension war-chests proving that Britons are not nearly as weak-willed as was feared when pension rules were relaxed a year ago. Reporting on the first anniversary of the "Freedom and Choice" reforms, the Association of British Insurers (ABI) said that over half of people had only drawn down a small lump sum from their [...]
Big data should be used to discriminate on motor insurance premiums, says FCA chief executive November 22, 2016 Insurers should use big data to identify and reward good drivers, according to the head of the UK's financial watchdog. Speaking today at the Association of British Insurers' (ABI) annual conference, Financial Conduct Authority (FCA) boss Andrew Bailey said the "revolution in our ability to capture and use information" should be encouraged by regulators in certain [...]
City Moves for 1 December 2016 | Who’s switching jobs December 1, 2016 NEON Neon has appointed Geoff Riddell as its new non-executive chairman. Geoff brings with him over three decades of experience in the international and London insurance markets. He is currently chairman of Pool Re, having joined its board in 2015. He previously held several senior managerial roles at Zurich, where he was chief executive and [...]
Home insurance premiums remain stable despite flood fears and tax increases August 30, 2016 Insurance premiums have not spiked as was feared following the flooding that blighted parts of Britain earlier this year. The latest research shows that annual premiums have increased just 1.6 per cent for the year to July. Furthermore, these price changes include the increase in insurance premium tax in November 2015 from six to 9.5 per cent. In addition there [...]
Falling ill on holiday could cost you as much as a house, the Association of British Insurers warns August 11, 2016 The high cost of overseas medical bills means falling ill abroad could cost double the amount of an average UK house. Insurers are now processing claims from more than 3,000 British travellers per week who require emergency medical care while abroad, according to the Association of British Insurers (ABI). While the average travel insurance claim [...]