Prolific management consultants Whatsup Perrin are back with a masterclass on business theory for UK motor insurers.

Apparently it’s all getting a bit competitive out there, and insurers need to choose between differentiating on service or being lowest on cost. “You can’t do both,” warns Ryan Warren, whose title is too long to relate here.

Since only one can be lowest on cost, this logically suggests all the rest will need to differentiate on service.

Apparently the UK motor sector gets 70% of its advice from Perrin Towers, so we could soon see a major change in business model from all those “not quite the cheapest but pretty good considering” type insurers.

Watson Towers reckon the UK motor market now has a combined ratio of around 120%, up 30 points on a decade ago.

But “how much of this is collision and how much collusion,” Ryan asks – noting that fraud adds £80 to every claim.

Is he suggesting the industry is colluding with fraudulent claimants? Would they really do that?


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