UK underwriters: premiums will rise in Q1
by David Masters
Story link: UK underwriters: premiums will rise in Q1
The vast majority of UK underwriters expect insurance premiums to rise in the first quarter, according to research released this week.
In a survey conducted by Aon, 92% of underwriters predicted an increase in premiums for vehicle insurance.
In addition, 74% predicted a rise in property rates over the next three months, whilst 69% said liability premiums will increase.
Insurers are looking to make up for three to four years of offering competitive rates, as well as dealing with rising claims costs and a difficult economic environment, Aon said.
Steve Redgwell, Aon’s broking director for mid to large sized UK businesses, said: “We are hearing very strong messages from insurers about rates rising but these have not yet manifested themselves into actual increases.
“However, UK companies must be aware of and prepare for the imminent shift in insurance market conditions that could affect their cover and premiums.”
Despite prices rising, Redgwell expects competition between insurers to remain as strong as ever.
“Underwriters are still hungry for new business and it is possible for companies to achieve highly competitive rates – as long as businesses can evidence that they are committed to and have a culture of good risk management,” he said.
The insurers surveyed by Aon underwrote £23.5 billion of premiums for UK companies in 2008.