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arry |
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arry Super Spammer
Joined: 03 Jan 2009 Karma :
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Posted: 18:06 - 28 Feb 2017 Post subject: Discount Rate change = grumpy insurers = premiums up |
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https://www.telegraph.co.uk/business/2017/02/27/uk-insurers-hit-back-crazy-personal-injury-rate-change-share/
Surprised Mr Borg hasn't jumped in with this one already.
Basically, any insurance companies writing classes with long tail bodily injury exposures (motor, predominantly), are about to have the asses well and truly torn out of them which will only lead to one thing; rates up.
When dealing with bodily injury claims, reserves are set based on a set of actuarial tables called the Ogden Tables. Within these there are a number of columns that outline what's known as the Discount Rate.
So, once you've worked out how long future care will be needed for, then when your injured party is likely to die, you work out from the Ogden Table what your total cost multiplier will be and the Discount Rate is used.
The MoJ have gone totes spastic and changed that rate from 2.25% to -0.75% which is an absolutely huge shift which will add a huge £££ increase to the cost of longer term care requiring claims.
The best of it, well this applies to claims that are SETTLED after 20th March this year. That means insurers will have to cover a good number of years of retrospective losses - as the claims they've already reserved for will now need to be re-reserved, and will invariably now carry a much higher £ amount number against them.
The laughs a minute MoJ has also picked -0.75% which there isn't actually a column for within the table -0.5% or -1.0% no problem, but in the middle just doesn't work, it's not linear #Trollinfosho'
It's all kicking off nicely with share prices of insurers crashing around their ears and the champagne fund being told to go on the wrong kind of ice right now.
What does it all mean? Well, in short - expect premium hikes, and sizable ones. Cheers Govt |
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Pete. |
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Pete. Super Spammer
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Posted: 18:13 - 28 Feb 2017 Post subject: |
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Does that mean that I don't dare challenge my renewal quote even though I think it's a bit high? ____________________ a.k.a 'Geri'
132.9mph off and walked away. Gear is good, gear is good, gear is very very good |
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arry |
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arry Super Spammer
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Pete. |
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Pete. Super Spammer
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Posted: 18:29 - 28 Feb 2017 Post subject: |
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So this is already in effect, not imminent? If so I'll get on the phone as my renewal's a bit spastic this year. ____________________ a.k.a 'Geri'
132.9mph off and walked away. Gear is good, gear is good, gear is very very good |
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Rogerborg |
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Rogerborg nimbA
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Andy_Pagin |
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Andy_Pagin World Chat Champion
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arry |
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Nobby the Bastard |
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Nobby the Bastard Harley Gaydar
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Nobby the Bastard |
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Nobby the Bastard Harley Gaydar
Joined: 16 Aug 2013 Karma :
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Posted: 21:23 - 28 Feb 2017 Post subject: |
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So, 3% increase in the discount on £1M supposed to last 20 years? Thats £50k a year
For the first year, you'd need another £1500 extra.
For the second year, you'd need £1500 plus 3% (£45)
For the thrid year you'd need £1545 plus 3%
etc
etc.
I can't see how this will increase the total payment made by a quarter, which is what would be needed to justify increasing premiums by that amount.
After all they could always just reduce their profits.
https://www.aviva.com/media/news/item/aviva-plc-2016-interim-results-announcement-17651/ ____________________ trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Sprint ST 1050 |
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M.C |
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dave05 |
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dave05 Derestricted Danger
Joined: 23 Feb 2017 Karma :
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Posted: 06:40 - 01 Mar 2017 Post subject: |
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insurance has us by the balls anyway £25 change of vehicle £25 if you cancel £££££££ for anything just winds me up |
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arry |
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arry Super Spammer
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arry |
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arry Super Spammer
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Posted: 07:48 - 01 Mar 2017 Post subject: |
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Nobby the Bastard |
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Nobby the Bastard Harley Gaydar
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Posted: 22:41 - 01 Mar 2017 Post subject: |
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yes. It's the usual justification for trying to pay less than the minimum wage. ____________________ trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
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Andy_Pagin |
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Andy_Pagin World Chat Champion
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Posted: 01:35 - 11 Mar 2017 Post subject: |
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Looks like the impact on our particular run-off clients will be minimal, the vast majority of their assureds are in the USA, and from what I've been told it's the jurisdiction of the assured that's the key factor, not that of the underwriters.
Might even be a little renaissance for the run-off business if a few motor insurers can't meet the inflated reserves required and keel over. ____________________ They're coming to take me away, ho-ho, hee-hee, ha-haaa, hey-hey,
the men in white coats are coming to take me away.
Yamaha Vity -> YBR125 -> FZS600 Fazer -> FZ1-S Fazer |
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Rogerborg |
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Rogerborg nimbA
Joined: 26 Oct 2010 Karma :
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Posted: 10:31 - 11 Mar 2017 Post subject: |
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Any news on underwriters closing their books to high risks? Bennetts are suggesting it may happen, at least short term. ____________________ Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike |
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arry Super Spammer
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Old Thread Alert!
The last post was made 7 years, 46 days ago. Instead of replying here, would creating a new thread be more useful? |
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