After an initial flurry of price hikes, it looks like the pace of increase in motor insurance is starting to level off, with some insurers even rowing back on the initial increases they implemented.
The front page of Saturday’s Daily Mail highlighted the differences people are paying for their motor insurance depending on how they pay it. Those who pay once, pay less.
Following the recent announcement around the reduction of the Ogden discount rate the market has already seen many brands review their insurance pricing strategy to account for the greater claims costs they will face moving forward. At this early stage in March, Consumer Intelligence has already seen an increase in average car insurance prices of 2.2% since February and 4.1% since January.
In light of these changes the need to monitor your pricing has never been greater to ensure you are keeping your competitive edge as well as maintaining a profitable book of business.
Industry observers always say that claims are the shop window for insurance, but when it comes to getting people through the front door, having the right price is vital.
The Insurance industry is in a flap. It looks like the cost of insurance claims is about to jump up dramatically and the industry is running around trying to work out who to blame. APIL, Insurers, the ABI, the MOJ, the Treasury or random passers-by.