Staveley Head on the Rise in Insurance Premiums
Staveley Head on the Rise in Insurance Premiums
Automobile and van insurance premiums could see a major increase in 2010, say some experts in the insurance field; this is predicted even after a 20% rise in premiums in 2009. The reason for the rise in premiums is blamed on the constantly rising cost of personal injury claims and the expense of lawyers who are seen in heavy advertising campaigns on TV and the UK press.
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2010 is expected to see a 15% rise in insurance premiums according to some experts, this is coming after the 20% rise in premiums that happened between the first of 2009 and the beginning of 2010 that was revealed in a report by Consumer Intelligence.
Some have accused the price comparison sites of holding the insurance rates artificially low over the past two years, but even the comparison sites are starting to feel the pinch of the reaction of insurers to the persistent underwriting losses that have hammered the industry.
Staveley Head, one of the top commercial vehicle insurers in the United Kingdom, thinks that the reason the rates have stayed low is the result of the insurance companies trying to maintain their share of the market regardless of the cost.
A representative for Staveley Head said that insurers have been underwriting insurance cover at a loss for several years, with the hope that the return on investments would cover the loss. However, being in a recession has lowered investment returns to an insignificant amount, forcing many insurance companies to use their reserves to pay out dividends. As reserves run low, insurers have had no other option but to bring the premiums up to a more realistic rate.
Article By alex
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