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Thread: Motor Insurance to rise from 5% & upwards

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    Default Motor Insurance to rise from 5% & upwards

    Most insurance companies planning to increase car policy premiums | IOL

    yet again another example of corporate greed...

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    I've been saying this for ages.

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    Politics.ie Member libertarian-right's Avatar
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    Let us introduce something along the lines of the ballpark model.

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    Quote Originally Posted by libertarian-right View Post
    Let us introduce something along the lines of the ballpark model.
    Let us introduce flogging for every moron who claims a soft tissue injury after a bump in a car park.

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    What evidence is there to simply write this down as corporate greed without any background analysis of the industry. It may be excessive profiteering but where is the analysis?
    Have the insurance companies rewarded their workers with pay rises for instance?
    Has the overall profitability increased?
    Have claims increased?
    Interest rates are low this environment tends to increase insurance costs.

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    Politics.ie Member seanmacc's Avatar
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    The insurance companies rely on making profits from investments on the cash they get from premiums rather than premiums alone. Downward trend in property + billions being wiped off share values this year= less profits from investments. I believe they are moving into government bonds more so now.

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    Quote Originally Posted by birthday View Post
    What evidence is there to simply write this down as corporate greed without any background analysis of the industry. It may be excessive profiteering but where is the analysis?
    Have the insurance companies rewarded their workers with pay rises for instance?
    Has the overall profitability increased?
    Have claims increased?
    Interest rates are low this environment tends to increase insurance costs.
    There are a number of issues.

    *In order to be competitive the cost of premiums was kept low.
    *The cost of claims increased. It's a lot more expensive to replace the bumper on a 5 series BMW (and even more so if you insist on using a BMW Garage) than it is to replace the bumper on a 5 year old Toyota Avensis. There were a lot more BMW drivers out there in the last few years.
    *More injury claims. While PIAB (or whatever they call themselves now) has gone someway to lower the cost of an injury claim the fact that there are more than there used to be doesn't negate the costs involved.

    The above issues along with the stock market woes have left Insurance companies with insufficient reserves to deal with their risk and as such they have to increase those reserves. The easiest way to do that is increase premiums. This situation is not down to imprudence or greed, it's simply a market situation that needs to be addressed.

    Having sufficient reserves is in the interest of the customer, as when it does come to dealing with a claim, either for or against you, there is enough there to cover it.

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    Quote Originally Posted by CookieMonster View Post

    The above issues along with the stock market woes have left Insurance companies with insufficient reserves to deal with their risk and as such they have to increase those reserves. The easiest way to do that is increase premiums. This situation is not down to imprudence or greed, it's simply a market situation that needs to be addressed.

    Having sufficient reserves is in the interest of the customer, as when it does come to dealing with a claim, either for or against you, there is enough there to cover it.
    Was it not insurance companies greed, that got them involved in the stock markets in the first place?

    To make more profit!!!

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    5%?!! Yeah, and the rest!
    I just renewed my insurance, which in 12 months has risen from €430 to €595! Despite having no claims, an extra yrs NCB and the same car (the resale value on which has decreased by a massive 40% due to the economic difficulties!)

    And just to make it clear, thats the price i got after phoning a LOT of companies and haggling the cheapest one down from €700... (the previous years price was straight off a website with no haggling etc) Absolutely crazy. The feckers must be price fixing. Every company i tried were coming in at between 40 and 60% higher than their respective quotes from last year...

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    Quote Originally Posted by crocked View Post
    Was it not insurance companies greed, that got them involved in the stock markets in the first place?

    To make more profit!!!
    They have always been involved in investments in some way or another. They do it to lower premiums for their customers, which are based on the risk they pose and their reserve levels.

    In part their recent worries have been because they needed to compete with rogue insurance companies who were taking on dangerous levels of risk without reserving correctly.

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