News, reports and opinion from the UK and Global insurance marketplaces
Understandably the insurance industry reacted negatively to the news, but in the end cold, hard cash did the talking some days later. on 31st May, stock market analyst Collins Stewart was bullish about the prospects of FTSE 100 darling Admiral Insurance precisely because of the LSB’s protectionist stance. Referral fees are to continue and Admiral will carry on earning a tidy sum from them; a fact that won’t have gone unnoticed by the many pension funds with holdings in the motor insurer.
Hooray, Datamonitor says the insurance sector’s rate rises will push through growth in the industry over the next four years, bringing in combined GWP of £29.2bn by 2014.
It took the insurance trade media a couple of weeks to notice that the Discount Rate was officially under review but this certainly got the defendant lobby talking amongst themselves with the actuaries pulling out their calculators first off.
Perhaps the most interesting angle comes from the Telegraph, which given its propensity to tackle MPs’ expenses claims, points out that they’ll no longer be able to get help defending themselves.
“It’s great, and so are we” say the insurers. “The system’s being abused and they’re taking advantage of it,” say the lawyers. Well which is it? Two very different angles about the the MOJ portal appear in today’s Post Mag and Law Soc Gazette.
Let us pray the market doesn’t fall any further behind the world of scientific discovery; it would be embarrassing to see a day when brokers can teleport into the underwriting room at Lime Street only to be forced to wait for five hours behind a queue of people weighed down in paper.