UK Insurance Premium tidal wave

[spygirl]

UK home insurance prices set to jump after dire year for underwriters

Rise of 36% expected due to swings in weather, higher inflation and strained supply chains, says EY

https://www.ft.com/content/29383691-2cf4-4006-9bae-8bdc07c64eca

UK home insurance prices are expected to rise by more than a third over the next two years, according to a new forecast, as insurers respond to their worst year for underwriting in decades by pushing premiums yet higher.

 

Apparently few if any underwriters want to touch cars either at the mo. Theyve been losing money for the last few years.

Hmm ... more n more muzzers + drunk EE.

 

 

[Errol]

Going to end up with loads of people not insuring their homes.

[Frank Hovis]

18 minutes ago, Errol said:

Going to end up with loads of people not insuring their homes.

 

Yes, even though its' ridiculously cheap comapred to the potential loss.

I think the same for motor insurance, the liability rather than the physical.  If an accident is your fault and you leave the other guy a paraplegic then you are on the hook for millions.

Insure or run the risk of going bankrupt or losing your house.

The one isurance I never bothered with beyond my first year of student renting was "contents", I never had anything valuable and worked out that three years' premiums would be sufficient to let me replace everything new. I have it now as it's bundled with my house cover.

Smilarly any "extra cover" sold with goods, the price is totally out of kilter for the risk.

[Joncrete Cungle]

24 minutes ago, Errol said:

Going to end up with loads of people not insuring their homes.

Contents, building or both? Could get erm interesting at mortgage deal renewal time if you have skimped on building cover.....

It's peanuts in the grand scheme of things, our buildings and contents is £200 ish off the top of my head.

[Axeman123]

The big losses on reserves held as Gilts must be in the mix somewhere, maybe there is a D notice on pointing that out. If the insurers' reserves have lost 30% on paper, surely they will need to rebuild that nominal figure by raising prices and cutting dividends. If , this is just another wealth transfer.

[MrLibertyRedux]

33 minutes ago, Frank Hovis said:

 

Yes, even though its' ridiculously cheap comapred to the potential loss.

I think the same for motor insurance, the liability rather than the physical.  If an accident is your fault and you leave the other guy a paraplegic then you are on the hook for millions.

Insure or run the risk of going bankrupt or losing your house.

The one isurance I never bothered with beyond my first year of student renting was "contents", I never had anything valuable and worked out that three years' premiums would be sufficient to let me replace everything new. I have it now as it's bundled with my house cover.

Smilarly any "extra cover" sold with goods, the price is totally out of kilter for the risk.

Yes, I mentioned on here before about the insurance when I got flooded, never be without it.

Not just the liabilty though. I know someone who's sister had a nasty car accident and suffered a brain injury, was going to need care of various sorts for the rest of her life.

I wouldn't want to be in curcumstances like that and be at the mercy of what state care was available.

The initial payout was nearly a couple of million IIRC with annual payments on top and further lump sums throughout her lifetime.

 

[Frank Hovis]

33 minutes ago, Axeman123 said:

The big losses on reserves held as Gilts must be in the mix somewhere, maybe there is a D notice on pointing that out. If the insurers' reserves have lost 30% on paper, surely they will need to rebuild that nominal figure by raising prices and cutting dividends. If , this is just another wealth transfer.

 

That's a very good point, I hadn't thought of that but should have done.

Insurers have very strong regulations about their "solvency" - the amount of available funds that they have to set aside for settling future claims.

If your investments drop by 20% then you have to make that back up or risk being shut down.

I'd say that the losses on gilts and corporate bonds are going to be the main reason behind these increases.

 

These effects should have been magnified for life assurance premiums owing to the longer nature of the cover but I can't find anything about that/

[Xtal]

2 hours ago, spygirl said:

UK home insurance prices set to jump after dire year for underwriters

Rise of 36% expected due to swings in weather, higher inflation and strained supply chains, says EY

https://www.ft.com/content/29383691-2cf4-4006-9bae-8bdc07c64eca

UK home insurance prices are expected to rise by more than a third over the next two years, according to a new forecast, as insurers respond to their worst year for underwriting in decades by pushing premiums yet higher.

 

Apparently few if any underwriters want to touch cars either at the mo. Theyve been losing money for the last few years.

Hmm ... more n more muzzers + drunk EE.

 

 

Funnily enough , our renewal quote came through this week and it’s up from around £175 to £210

[spygirl]

Motor insurers endure worst underwriting conditions in a decade

Sharp rises in the cost of used cars and repairs eviscerates margins

https://www.ft.com/content/99928b77-57ec-44ae-b0c8-c67bf42ca3d2

From June 23

[spygirl]

UK motor insurers suffered their worst underwriting performance in a decade last year as spiralling claims and other costs far exceeded premiums, with further losses expected in 2023 as providers struggle to recoup the expense of inflated payouts.

Car insurers’ net combined ratio, which shows claims and costs as a proportion of premiums, hit 109.5 per cent in 2022, according to the latest figures from consultancy EY.

Anything above 100 per cent on this measure, which is adjusted for reinsurance, represents an underwriting loss. “It’s a long time since it has been this bad,” said Rodney Bonnard, UK insurance leader at EY. “For many people, it is not in recent memory.” 

Not being funny but I wonder if this is immigrant related?

Ee lorries and Mr Magoo brown drivers.

[spygirl]

Comments-

They need to stop the insurance scammers , rather than just pay out. My daughter was a victim in York, the culprit a taxi driver from Bradford-you couldn't make it up! He menacingly demanded money at the roadside, when he didn't get that stormed off without exchanging details and then submitted a fraudulent claim, and Aviva paid out! They said she was revesring so her fault. He was on the wrong side of road,!Police didn't respond to leaving an accident and not reporting it!

[Axeman123]

8 minutes ago, spygirl said:

Not being funny but I wonder if this is immigrant related?

Recent newspaper etc stories about EV repair costs etc probably reflect some of the higher than expected payouts they have incurred.

Lingering post-COVID supply chain issues driving up the price of authentic repair panels or plastic stuff like lights and bumpers for normal cars can't have helped either. Allegedly Princess yachts is still struggling with similar problems beleive it or not (I posted an article earlier today on this)

[Bornagain]

7 hours ago, Frank Hovis said:

The one isurance I never bothered with beyond my first year of student renting was "contents", I never had anything valuable and worked out that three years' premiums would be sufficient to let me replace everything new. I have it now as it's bundled with my house cover.

Many years ago we lived in the outskirts of Bradford. One evening our garage was broken into and a couple of bikes were stolen.

The insurance company decided that as the claim was more than a certain amount then they would send somebody (was he a loss adjuster ?) to look at the claim and check that our contents were not worth more than stated in the policy and to satisfy themselves that we were not swindling them.

I met the gentlemen one afternoon at home and reassured him that we had nothing worth stealing, he brushed this off and told me that I would be surprised.

I followed him around the house as he carried out his work and checked all the window and door locks.

When he had completed his tasks, we stood in the hallway and he told me "that in all my years of doing this job, I have never had to tell anybody this, but Mr B, you are correct - you do have nothing worth stealing"

I was so proud

 

 

[Frank Hovis]

4 minutes ago, Bornagain said:

Many years ago we lived in the outskirts of Bradford. One evening our garage was broken into and a couple of bikes were stolen.

The insurance company decided that as the claim was more than a certain amount then they would send somebody (was he a loss adjuster ?) to look at the claim and check that our contents were not worth more than stated in the policy and to satisfy themselves that we were not swindling them.

I met the gentlemen one afternoon at home and reassured him that we had nothing worth stealing, he brushed this off and told me that I would be surprised.

I followed him around the house as he carried out his work and checked all the window and door locks.

When he had completed his tasks, we stood in the hallway and he told me "that in all my years of doing this job, I have never had to tell anybody this, but Mr B, you are correct - you do have nothing worth stealing"

I was so proud

 

 

 

Brilliant!

TBF my worry is that I have heard that if people break in and there's nothing worth stealing then they will trash the place.

As I have no TV, tablets, fancy stereo, designer clothes, or jewellery I think that I might be at risk.

I have two original paintings that were both gifts and are worth maybe £800 combined, though I doubt that a drugged up burglar would recognise them as such.

 

I have said this before but a mate's car was stolen one time, it was maybe worth £500.

The police found it abandoned in a nearby town and their opinion was that he had just stolen it to drive home.

Three or four of us went to pick it up, expecting it to be trashed.

The only damage however was light damage to the steering column where he had hotwired it.

The funny thing was that my mate had treated it like a dustbin, empty fag packets, food wrappers littered the floor, and the thief had thrown most of these out.

[Axeman123]

1 minute ago, Frank Hovis said:

The funny thing was that my mate had treated it like a dustbin, empty fag packets, food wrappers littered the floor, and the thief had thrown most of these out.

It could be as simple as the theif planning ahead to wanting to be able to see if he had left anything identifiable of his own behind when he was done with it.

[Frank Hovis]

7 minutes ago, Axeman123 said:

It could be as simple as the theif planning ahead to wanting to be able to see if he had left anything identifiable of his own behind when he was done with it.

 

Could be but the police weren't at all interested even back then. Car stolen, car recovered with very little damage.

Case closed.

[PETR4]

7 hours ago, Axeman123 said:

The big losses on reserves held as Gilts must be in the mix somewhere, maybe there is a D notice on pointing that out. If the insurers' reserves have lost 30% on paper, surely they will need to rebuild that nominal figure by raising prices and cutting dividends. If , this is just another wealth transfer.

D notices in effect here:

https://www.dsma.uk/standing-notices/

The historic ones can be downloaded at the button.

Guardian article (appologies!) about them here:

https://www.theguardian.com/media/2015/jul/31/d-notice-system-state-media-press-freedom

It's a "voluntary" code don't ya know 

I would doubt the committee would know what losses on reserve gilts are 

 

[onlyme]

3 hours ago, Axeman123 said:

Recent newspaper etc stories about EV repair costs etc probably reflect some of the higher than expected payouts they have incurred.

Lingering post-COVID supply chain issues driving up the price of authentic repair panels or plastic stuff like lights and bumpers for normal cars can't have helped either. Allegedly Princess yachts is still struggling with similar problems beleive it or not (I posted an article earlier today on this)

Pretty much every factor you can think of is going in the wrong direction (apart from maybe returns on cash held in interst bearing account). On top of everything else when people are brassic fraud claims increase and claims made ifpeople have no spare money and reosrt to even small claims they might otherwise have not made so as not to affect their future premiums. Insuance makrkets can go for year upon year in a soft market, loads of competition and cutting margins to the bone and then wallop, a whole slew of claims come in and the next years underwriting considerations are entirely  different.

[headrow]

I've never had home insurance since I paid the mortgage off 25 years ago.

If it burns down it burns down.

[OurDayWillCome]

1 hour ago, headrow said:

I've never had home insurance since I paid the mortgage off 25 years ago.

If it burns down it burns down.

Can you get fire cover only? I have mine insured at the absolute minimum, even then it includes cover I don’t need.

[belfastchild]

1 hour ago, headrow said:

I've never had home insurance since I paid the mortgage off 25 years ago.

If it burns down it burns down.

Detached house?

[spunko]

40 minutes ago, belfastchild said:

Detached house?

The value in a detached house is in the land. It's a tough one really, a lady near me didnt insure and her house burned down but she flogged the land for £700k (it was IIRC about an acre). Difficult to know if it would have been worth much more as a house. Given that a house previously stood there, the council shouldn't have any issue permitting a replacement.

(Now it's a horrid McMansion)

[belfastchild]

14 minutes ago, spunko said:

The value in a detached house is in the land. It's a tough one really, a lady near me didnt insure and her house burned down but she flogged the land for £700k (it was IIRC about an acre). Difficult to know if it would have been worth much more as a house. Given that a house previously stood there, the council shouldn't have any issue permitting a replacement.

(Now it's a horrid McMansion)

Was thinking more along the lines of madness not having insurance in a semi or terrace if the house burns down and its your fault.

[DurhamBorn]

16 hours ago, spygirl said:

Motor insurers endure worst underwriting conditions in a decade

Sharp rises in the cost of used cars and repairs eviscerates margins

https://www.ft.com/content/99928b77-57ec-44ae-b0c8-c67bf42ca3d2

From June 23

Its getting hard now to get a car repaired unless you know the garage well.2 to 3 weeks wait for MOT date,2 to 3 weeks if you are lucky to get the repair done.My mate is turning away all big jobs now because he does not have the staff to do the smaller MOT repairs that take an hour and bigger jobs.He does the small jobs for the MOT fails only.My other mate is a one man set up,little unit he owns.He only does the odd big job now,nothing else,works two days a week.He has just done my daughters clutch for £500,be £800 to £1100 anywhere else if anyone would do it.There is a massive move to get everyone but the rich off the roads ,but outside of the cities public transport is terrible.Im going to get a van next and put extra seats in,much easier to repair and much less to go wrong.

[Pip321]

3 hours ago, headrow said:

I've never had home insurance since I paid the mortgage off 25 years ago.

If it burns down it burns down.

 

1 hour ago, belfastchild said:

Was thinking more along the lines of madness not having insurance in a semi or terrace if the house burns down and its your fault.

Compromise for me is after 25 years of insuring using mortgage companies or big brands and NEVER making a claim (and at the time owning several properties because I am a bastard landlord) I decided enough was enough.

So I added up my premiums (about £3500 a year) and went to shitonlinediscountinsurers.com and took out the cheapest premium I could find. Joking apart I just shopped around and took the very cheapest quote I got but with the same/similar cover. I haven’t paid more than £1000 a year since. I don’t care about customer service because I don’t expect to ring them….I imagine when I ring the number no one will answer….but at least I know I am in theory insured. 

ps currently discount insurance and direct line were cheapest this year.😉