Rates refuse to budge
Tom Cooper takes us through the results of iGO4’s third price comparison watch and asks why motor rate rises are failing to find their way to the customer and the knock-on effect this is having on insurers.
The third price comparison watch conducted by iGO4 this month clearly demonstrates that, despite prolonged industry calls for increased motor rates, these are once again failing to find their way through to the consumer. In fact, the best prices across the four major aggregators measured fell by 0.34% in quarter two. This conflicts with the AA Premium Index, which estimated increases of 10% to 12% working
their way through during 2009.
There is no doubt the phenomenal success of aggregators has contributed towards consumer prices being held down by exposing the less competitive and driving certain behaviour from participating brands. Speaking in Manchester at the recent British Insurance Brokers’ Association conference, Hayley Parsons, chief executive of Go Compare, rightly pointed out that it is the brands on the site that set the prices — not the aggregator. Surely only in the UK insurance market could so many insurance providers be given free access to four million quotes a month and manage to moan about it.
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*Taken from the Post Magazine July 2009