With motor rates leaping up by 15%, Tom Cooper assesses whether prudent, profitable pricing is finally on the horizon.
The sharp increase in motor insurance rates experienced in the last quarter of 2009 has continued through the opening months of 2010 — with a further 7% increase in the first quarter. This equates to a whopping 15% uplift in the past six months alone. While the iGO4 pricecomparison watch is the only index that has tracked prices for a fixed basket of risks for the past two years, on all of the major price comparison sites, our findings would appear to be very much in line with other indices that are reflecting this remarkable shift in distribution. With the results season now behind us, it will be interesting to see whether this trend continues into the summer or whether the pressure to maintain market share wins out over prudent and profitable pricing.
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*Taken from the Post Magazine April 2010