Insurance

FSA tick box regulation criticised

Chris Wheal
Mar 20th 2010

Filed under: Personal Finance, Insurance

Tom Baigrie, boss of life insurance specialist Lifesearch, has questioned whether the Financial Services Authority (FSA) regulation of advisers works given so many consumers buy without advice online.

The FSA says online products are regulated and online sellers comply with regulations. But it accepts that many buyers just tick the box saying they have read the regulatory information without reading a word of it. Baigrie is right. And it is the most vulnerable who buy unadvised. The FSA is letting them down.

Insurers' poor motor claims in court

Chris Wheal
Mar 19th 2010

Filed under: Insurance

A court case a against a former employee of a firm called Autofocus - egged on and commented on by credit hirer Accident Exchange - has brought into the spotlight the scandalous state of motor insurance claims.

Have a shunt that's not your fault and firms such as Accident Exchange lend you car on credit and bill the insurer. This bumps up the costs of claims. They argue, correctly, that they provide you with the service you are entitled to. If insurers offered that level of service these firms would be redundant.

XL Capital may face $205m Chile costs

Chris Wheal
Mar 18th 2010

Filed under: Insurance

Bermuda insurer and reinsurer XL Capital said preliminary loss estimates for the Chilean Earthquake, pre-tax and net of reinsurance and reinstatement premium, range from $140m to $205m.

It said $75m to $85m is attributable to the insurance segment and $65m to $120m to the reinsurance segment. This is another bitter blow to reinsurers and will add weight to the argument hat reinsurance rates must rise.

Co-op proves more popular than ever

Chris Wheal
Mar 18th 2010

Filed under: Company, Insurance, Banking

The Co-op has revealed its almost annual results this morning - 51 weeks instead of 52 - but will reveal greater detail of each of its businesses in about a week and a half. It has to publish its banking results today to meet regulatory rules.

And the Co-op is basking in the glory, not just of a positive set of results but that fact that co-ops are suddenly all the rage among politicians of all parties.

Admiral Group charges migrants more

Adrian Holliday
Mar 17th 2010

Filed under: Personal Finance, Insurance, Retail

If you're a migrant you're more likely to be charged more for your car insurance - if you choose Admiral.

That's the conclusion of a Which? survey that's rapped the insurance player for piling on premiums - almost a 20% hike in some cases - for drivers who haven't lived in the UK since birth.

2009 catastrophes cost insurers $26bn

Chris Wheal
Mar 17th 2010

Filed under: Insurance

Swiss Re's sigma study reports that natural catastrophes and man-made disasters in 2009 cost insurers $26bn and society $62bn overall, below average due to a calm US hurricane season.

Natural catastrophes cost insurers $22bn in 2009, while man-made disasters cost an additional $4bn. While the figures are down, they emphasise the importance of insurance. Residents of Chile will be much better off than those in Haiti because Chile had better insurance cover.

Hiscox: reinsurance rates must rise

Chris Wheal
Mar 16th 2010

Filed under: Insurance

Lloyd's insurer Hiscox said this morning that based on an insured market loss of $8bn for the Chilean earthquake, and $3bn for windstorm Xynthia, Hiscox estimates a combined net loss of approximately £100m.

It said the estimate is within budgeted losses for such events and Hiscox has reinsurance cover remaining for other catastrophes. Crucially, Hiscox believes these losses will result in the firming of some reinsurance rates. It had better do.

FSA rules risk extinction of mutuals

Adrian Holliday
Mar 15th 2010

Filed under: Economy, Personal Finance, Financial Crisis, Mortgages, Insurance

Could new strict FSA rules be the death of mutuals? Building societies are a dying breed currently thanks to increased market consolidation and low interest rates.

However the boss of mutual MGM Advantage says new FSA rules could force many to close or merge. Assurance boss Chris Evans told the Independent that the new rules could "force many mutuals to either consider merging or closing to new business and going into run-off."

Reinsurers face catastrophe cost rises

Chris Wheal
Mar 15th 2010

Filed under: Insurance

Reinsurers Scor, Validus and Flagstone have published their estimates for the Chile earthquake and windstorm Xynthia claims. The cost of both are mounting.

Bernard Spitz, the president of French insurance company association FFSA told French newspaper Le Journal du Dimanche windstorm Xynthia will cost around €1.5bn euros, Reuters reports. This is happening just as premiums for catastrophe cover has fallen because of such light claims last year.

Flood risk homes get £2.6m defences

Chris Wheal
Mar 12th 2010

Filed under: Insurance

Environment Minister, Huw Irranca-Davies yesterday announced the second round of the £5.5m Property Level Flood Protection Grant Scheme, providing £2.6m to help households protect their homes against flooding.

Can those of us not at risk of flooding have some money please? Why do people at risk of flooding get government help but those at risk of other threats - burglary or vandalism, for example - get nothing?

NY and the City clash: London falling

Chris Wheal
Mar 12th 2010

Filed under: Financial Crisis, Insurance, Banking

London and New York are level in the Global Financial Centres Index compiled by Z/Yen for the City of London Corporation for the first time because fears of "a regulatory backlash" and taxes cut London's score by 15 points.

"London has dropped 15 points in the ratings, from 790 to 775 points - the second largest drop in scores. New York has overtaken London in three of the subindices: Business Environment, People and Infrastructure," the report said. How worried should we be?

Free money for families - get what you're entitled to

Money Magpie
Mar 12th 2010

Filed under: Personal Finance, Savings and Accounts, Insurance

There's free money to be had when you have a baby and start to run a family. It's just as well because you need all the bargains, cut-price deals, cheap offers and other financial help with the cost of bringing up children. Here are tips on how to have a great family life on half your salary.

The first thing to go for when you're strapped for cash and running a family is to make the most of any benefits available to you.

Embattled Omega warns on premiums

Chris Wheal
Mar 11th 2010

Filed under: Company, Insurance

Omega - the Lloyd's insurer under attack by major shareholder Invesco Perpeptual - announced pre-tax profits up 67% to $47.1m (2008: $28.2m), based on gross written premiums of $265.8m ($265.4m) this morning.

The pre-tax result included a profit of $36.5m (loss of $3.0m) from underwriting activities, $15.9m ($23.5m) from managing agency activities and $16.3m ($21.8m) from investment income. Profit for the year was $43.6m ($22.2m). Its combined ratio was 81.4% (101.4%). It won't be enough to stop Invesco.

Insurers paid out £650m this winter

Chris Wheal
Mar 11th 2010

Filed under: Insurance

The Association of British Insurers (ABI) says insurers paid out £650m in 335,000 claims for damage to homes, businesses and vehicles following the coldest winter in 30 years.

They paid out £395m for motor accidents - mainly self-damaged slipping on ice and snow - and £255m to homeowners. If there were ever an example of why insurance is so important it is these figures.

More Chile quake insurer estimates

Chris Wheal
Mar 10th 2010

Filed under: Company, Insurance

More insurers have estimated their losses from the Chile earthquake and the recent windstorm in France and Spain called Xynthia. Swiss Re estimates its loss from the Chile quake to be $500m from a total insurance loss of $4bn to $7bn. Its losses from Xynthia will be approximately $100m,it said.

Reinsurer Transatlantic Holdings, which is buying millions of its own shares back from an AIG subsidiary, expects to incur between $60m and $90m, net of tax, from the Chile earthquake and European windstorm Xynthia. And PartnerRe has reported too.