Financial analysis and ratings firm Filch this week predicted that it may be quite some time before motorists reap any price reduction benefits from the government’s renewed determination to abolish motor PI claims.
This opinion puts the analists directly at odds with Chancellor George Ozporn who insisted last week that everyone would see their motor insurance premiums slashed almost overnight.
Essentially, Filch’s view is that motor insurers could not possibly be stupid enough to repeat the insane price war on which they all embarked immediately after the First War on Claims (WC I) was announced back in 2012.
This time, Felch suggest, they will probably wait until they’ve made sure they really are making loads more money before they even think about dropping their premiums to clear all their rivals out of a newly profitable motor insurance market and nab it all for themselves (Bwahaha!)
In the aftermath of WC I, and David Cameron’s now infamous “Mission Accomplished” speech aboard HMS Indemnity, insurers’ early optimism about the post-War PI landscape quickly evaporated as claims farmers and claimant lawyers emerged from the rubble and quickly filled the vacuum left by retreating legislators to launch a fresh and deadly series of attacks.
With the new totally Tory administration now seemingly mobilising for WC II, Filch suggest there’s little danger of level-headed once-bitten insurers rushing to turn the Chancellor’s promises of cut-price car insurance into reality.
Expect combined ratio percentages in the 80s and 90s for several years to come, then.
Or maybe not.
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