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Daily Insurance Industry News
Sunday 21st of October 2018
June 29, 2007

Intermediaries Offer Best Motor Premiums

by Gill Montia

Story link: Intermediaries Offer Best Motor Premiums

Experian, the global support services company, has developed a Motor Insurance Benchmark, which measures motor insurance premium movements in the UK.

The model has revealed that in the past 12 months comprehensive motor insurance premiums in the direct market have increased to overtake premiums in the intermediary market. Premiums in the intermediary market have historically been higher than in the direct market.

In February 2006 the average quotation for comprehensive motor insurance reached £557, but by July of that year intermediary premiums had decreased significantly so that the average premium in the intermediary market is now 5.5% lower than the average premium in the direct market.

Experian’s research also shows that third party, fire and theft motor insurance in both markets has continued to cost significantly more than comprehensive motor insurance. This is mainly because it is taken out by younger drivers, who often opt for no a voluntary excesses.

Experian believes that the entire motor insurance sector is in transition. After the launch of Direct Line in 1985, the number of direct providers entering the motor insurance market increased rapidly, having a substantial affected on the market share held by intermediaries.

The sector has been further complicated by retailers entering the market and the growth in price comparison websites. Competition remains strong and the motor insurance industry could benefit from the overview provided by Experian’s new benchmark.

 

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