|
Assetsure News 10th May
2007
Competition for your Holiday Insurance - Holiday Home owners will be
delighted to hear that there are now a record number of companies fighting to
arrange your travel insurance. Competition is strong and premiums are now at an
all time low. In a report, it is claimed that there are now over 175 separate
distributors fighting for an industry that generates business of 700.00 million
per annum. Whilst this completion is good news for
holiday home owners wishing to obtain cover,
some insurers will be unable to sustain the low premiums being charged and will
without doubt be forced out of the market. If you travel regularly to your
second home, it may be an ideas to try to
obtain a quotation for an annual policy as prices for these are now at rock
bottom.
Provident Insurance for Sale - more shake up in the UK motor insurance
industry as Provident Financial agrees to the sale of Provident Insurance, a
motor insurance provider. Provident insurance are a well known product provider
to the high street broking community and offer a range of Comprehensive & Third
Party products, they have special rates for female drivers. The purchaser of the
business is Car Care Plan a subsidiary of GMAC insurance and the agreed price is
thought to be in the region of 170 million pounds. In 2006 Provident Insurance
reported turnover of 161.00 million pounds and made a pre-tax profit of 41.00
million. The sale has been brought about by the groups capital restructuring
plans. Brokers will greet this news with hope that the new owners continue with
Provident as a product provider of high street motor policies and perhaps will
even extend the range of products on offer.
Insurance Fraud a problem - New figures released suggest that insurance
fraud is now reaching worrying proportions. Fraud is most evident in the car
insurance industry and inevitably, it does increase premiums for all customers.
There are two types of fraudsters at work in the Uk insurance industry, the
honest policyholder who will slightly inflate a claim if he or she can get away
with it, and the professional fraudsters that deliberately sets out to make
false claims. Not only car damage or bogus Theft claims are attempted by the
professional fraudsters but in particular personal injury claims, which can cost
many many thousand of pounds. In 2005 there were nearly 3 million insurance
claims made in the United Kingdom and it is believed that fraud was involved in
a significant number of cases. Insurers are fighting back though and recently
Aviva, owners of Norwich Union introduced voice stress analysis to help
ascertain if people are telling the truth or not. From an individual
policyholders point of view it is worth pointing out that insurance fraud is a
crime, if you are found guilty of it, not only will you receive a criminal
conviction but it will prove very difficult to obtain insurance at a future
date. On insurance proposal forms and declarations, insurers always ask if you
have had any insurance cancelled or refused, and answering this question in the
affirmative will probably mean your proposal will be declined.
HSBC & Aviva in joint venture - HSBC and Aviva, the owners of insurance
giant Norwich Union have announced plans for the creation of a joint venture
which will be branded HSBC Insurance. The new deal will see Norwich Union market
and distribute products to the banks 10.2 million customers. This new joint
venture is seen as muscle flexing by HSBC who although active in insurance
broking for many years have never really delivered on value for money products.
HSBC are delighted at the tie up and are confident that the Norwich Union brand
name, quality of cover and product competitiveness will be a real bonus to it's
customers.
Heath Lambert up for Grabs - The name Heath Lambert is well known in
insurance broking circles, they provide a broad product range but now it would
appear , they are up for sale. The company wishes to keep its retail operation
sections and sell of the non retail business. Representatives of the company
have approached other companies operating in the sector with view to disposing
of the specialist wholesale decision for an amount believed to e 20 million.
Heath Lambert have a strong retail association with brokers, they provide
amongst other things
Home Insurance products and have launched
several; Internet ventures. It is believed that the company wish to restructure
as in time, concentrating on retail insurance sales alone will make the company
a more attractive proposition for a take over bid. Perennial takeover company
Tower gate have of course been mention as the company most likely to buy the
retail business but this is of course being hotly denied. Towergate are known to
have a war chest of funds to make acquisitions and the recent appointment of
Patrick Snowball, former head of Norwich Union is likely to see more
acquisitions in the near future.
Will Interest Rates Rise? -
It is broadly expected that interest rates will rise today to 5.5%. However
doubts are now being raised over whether the bank of England actually needs to
raise rates by this amount. Evidence is emerging that high street consumer
activity may be cooling. The British Retail Consortium (BRC) said that despite a
hot Easter period which boosted sales of clothing and shoes, sales growth was
down to it's lowest level in half a year. This down turn in sales could be a
result of consumers factoring a rate increase that has been widely tipped for
the last two months and actually making a conscious decision to save money.
Consumer spending is the key to interest rates and it has not been ruled out
that back to back increases may occur.
Homeowners will be watching the news closely
today to see if a rate rise is announced and many believe that today is a good
day to "bury" bad news as Tony Blair is expected to announce his resignation and
that will certainly over shadow everything else.
back
to top
Copyright Assetsure Limited 2007
|
you are here: