Insurers make a loss on insurance...

[daemonoid]

Quite surprising really:

www.insuranceage.co.uk/insurance-age/news/2179589/uk-motor-insurance-industry-cor-improves-106

Essentially insurers make a 6% loss when comparing cost of policies with the payouts on policies (down from a 20% loss).

This of course is not the whole story - see the inflated costs thread and insurers make a lot from selling details and upgrades to standard (legal cover etc.).

It does make me think that the proposed gov investigation will not find a thing as insurers will hide behind this number.
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@thomasgarrard | www.straitjkt.com | www.racingseven.com

[G]

And of course that they have to make their profit on basically ripping off the rival insurance companies so they make a loss points to why they aren't making decent profit on the policies in the first place.

A vicious circle that they can't do a massive amount about even if they wanted to I suspect.

[J.M.]

It probably wouldn't be so bad if every driver, and their 6 cousins who were totally in the car when you hit them, didn't claim for whiplash. Apparently payouts for whiplash are about £2bn a year (source). Supposedly it costs the NHS £8m a year to treat them all too (source).

And there are so many sites offering to help you claim whiplash.
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2004 R1 & 2018 XSR900

[mentalboy]

So if I've understood it correctly then for every £100 that is taken off punters the companies are shelling out an extra £6 in order to meet claims, wages and running expenses,etc. And it was £20 last year!
Maybe if they weren't shelling out for City of London premises (for example) and paid lower wages to boardroom staff and actually investigated claims properly then they wouldn't be making such losses.
I don't know about you but my bank manager would have something to say if I made a habit of asking him to extend my overdraft because I couldn't work/live within my means.
As for J.M's point about scamming them, I experienced this myself when I drove my cage into a car full of holidaymakers. They claimed £600 a head for ambulance/hospital costs and £2k a head for injury's and for four people. Despite getting a ride in one ambulance all together and one sprained wrist, AND since when has mother, father and daughter equalled four people!!!
I broke my nose, wrecked my right knee, left ankle tendon and broke my left hand and although I got the ambulance to myself and was patched up by the very same (nice) NHS staff I think I may have remembered a £600 bill!
In this instance I believe my insurer's had the last laugh though as I think they were a little unimpressed by the claim for Mr. Invisible and are still sat on their total £25k claim which happened last September. Caged Biker -1: Cagers - Nil
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Make mine a Corona.

[blurredman]

No wonder it's gone up alot lately in this last 2 years
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CBT: 12/06/10, Theory: 22/09/10, Module 1: 09/11/10, Module 2: 19/01/11
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Current: 1973 MZ ES250/2 - 18k, 1979 Suzuki TS185ER - 10k, 1981 Honda CX500B - 91k, 1987 MZ ETZ250 (295cc) - 40k, 1989 MZ ETZ251 - 51k.

[Alex_B]

No sympathy for the fekers whatsoever.

It just means any losses will be passed onto us next year and our premiums will go up. Even if we (hopefully) keep a clean slate.

The bad ones need investigating big time and this government thing will be a total whitewash and they will be given the green light to push premiums even higher.

I despair with this Insurance/whiplash culture, I really do.

It should be punishable by death if proved you're a scammer and then things might improve for the better.

Since immigration, yea, so shoot me, I don't give a feck, someones gotta say it and I'm not talking colour of skin either, scammers have gone through the roof.

Sort that, then we may, just may get back to normal.

Why TF am I paying more on my car with 50% no claims than when I had 0% no claims?
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My Lane Position is always AWESOME!!

[Kickstart]

Hi

This has been reported to the case for many years. As said there are other factors. One oft reported one was the profits to be made investing the money that was paid as a premium up front (not sure this makes that much sense, given it all goes into a pot). However another is it gives the insurer a name to try and sell more profitable insurance to.

[c-m]

The sooner we have a goverment owned or national insurance company the better.

I'd see it operating the same way that the government MOT centres do.

You'd then have a choice, join a private firm who's going to play fast and loose with the premium money and potential try to shaft you at ever opportunity, or join the government insurance scheme, which is bound to operate in a more ethical manner.
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Motorcycle headlight bulbs and HIDs
Blogging about my bike and trips
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[daemonoid]

[c-m]

[Kickstart]

[Babba]

99.9% of motorists have absolutely no idea of how the insewerance market works.

110% of Joe Public are not only clueless, they are dangerously witless as well.

Come back with your immature opinions after you have researched the differance between your broker & your underwriter, how the Lloyds market works, how the general health of the economy affects your premium & how closely linked the insewerers are to banking in general.

It is not possible to fully understand it all, but at least you might realise it has fuck all to do with risk management & 28 people in one car claiming for whiplash.

[daemonoid]

[Rogerborg]

Factor in how much of what they pay out on the swings comes back to them on the roundabouts of billing each other for "courtesy" cars, and getting kickbacks from body shops and ambulance chasers. They're not doing so badly.
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[sirswali]

Thieving PRICKS!

[LordShaftesbu...]

[TheBikerStig]

[iooi]

[mrdelmonti]

[G]

Supermarkets often sell some products at a loss (though less so now) as 'loss leaders' to get the customers in to buy their higher mark-up items.

Similar for console manufacturers that will sell the console it's self at a loss to get money back from game licensing sales.

[iooi]

[Kickstart]

[el_oso]

[arry]

[daemonoid]