If like, Bankstone News, you’d always assumed motor insurers were in it purely for the noble and selfless purpose of providing financial assistance to motorists in their hour of need, a new report from analists Towels Watson will have come as a rude awakening.
Apparently motor insurers are actually trying to make money! That’s right, strange but true: they’re out to cream a profit out of other people’s motoring fears and misfortunes. It’s just that they’re laughably inept at it!
But don’t worry, if Towels’ predictions are correct, motor insurers won’t be going all commercial on us any time soon. However expensive their premiums may seem, there’s precious little danger of them piling up much filthy lucre for the foreseeable future.
The Towels What’s On 2013 UK Motor Insurance Industry Report suggests that irrational exuberance over the anticipated LASPO windfall has exacerbated the cut-throat competition endemic to the sector to push motor insurers further than ever from the dreaded brink of profitability.
The price of a comprehensive motor insurance policy, Towels reckon, has now fallen by 23% since the end of 2011, suggesting that by the early 2020s the price of a policy will have dropped below the crucial 1p mark and that insurers may even have begun paying motorists to take out their policies.
Perhaps the smart thing for some ambitious motor insurer to do would be to anticipate this inevitable trend and begin handing out free policies right away. By so doing they could effectively steal a march on their competitors and capture a very significant share of this important market.
Just a suggestion.
No responses yet