Consumer insurance drops more than 5% compared to beginning of last year

25th April 2014

 

The cost of a consumer’s insurance ‘shopping basket’ in Q1 2014 has dropped 5.5% compared to the first quarter in 2013.  The BIBA-Acturis Insurance Price Index shows that for the second year in a row, motor insurance has dropped by around 5.5% in the first quarter, and household policies have reduced by around 5.5% despite the recent floods.

The index from the British Insurance Brokers’ Association (BIBA) and Acturis, an insurance IT service provider, launched in January 2014 to track the cost of insurance premiums.

Consumer shopping basket
Motor insurance premiums continue to reduce for consumers.  This, along with a reduction in household premiums, has resulted in the cost of the average consumer basket reducing by around 5.5% compared to the beginning of 2013.

Steve White, BIBA’s Chief Executive, said: “It is positive news for consumers. Premiums are continuing to drop because of the progress that the industry has made with reducing uninsured driving and the reforms to the legal system which have reduced the cost of claims. Insurance brokers are telling us that strong competition is also helping to drive the reduction.”

SME shopping basket
The BIBA-Acturis Insurance Price Index shows that average premiums for an SME insurance ‘shopping basket’ have remained steady when comparing Q1 2014 to Q1 2013. Within the basket, commercial vehicle premiums have reduced by 2% and commercial package premiums are up by around 3%.

Theo Duchen, Co-Chief Executive of Acturis, said: “Premiums in the commercial market remain fairly flat, this is largely down to a large amount of capacity and competition. Premiums also appear not to have been impacted by any major claims events recently which helps to maintain premium levels.”

Larger commercial basket
The third basket within the Index shows that average premiums for the larger commercial ‘shopping basket’ have been mostly flat since 2010 with a minimal decrease compared to the beginning of 2013.  The decrease follows six consecutive  quarters of small increases, with liability increasing slightly but overall the trend is flat for the basket.

White Van Man basket
Average premiums for a typical ‘white van man’ basket such as a plumber has also remained static with commercial vehicle reducing by around 2% and tradesmans’ package policies increasing around 5% compared to the same time last year.

Customers looking for suitable insurance can use BIBA’s Find a Broker service either on 0870 950 1790 or at www.biba.org.uk

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Notes to editors –

  1. All percentage figures quoted compare Q1 of one year with Q1 of the previous year, so that the figures encompass the same cohort of risks.

 

  1. The BIBA-Acturis Insurance Price Index includes four ‘shopping baskets’ to represent insurance buyers based on transacted premium in the market.  A consumer basket including a motor and home policy; a small and medium enterprises (SME) basket made up of a business package policy and a commercial vehicle; and a larger commercial basket made up of a commercial combined, fleet and combined liability policies; and a ‘white van man’ basket which includes a tradesman and commercial vehicle policy.
  2. For further information please contact:
    BIBA press office:
    Leighann Forsyth, Head of Communications
    020 7397 0223
    forsythl@biba.org.uk 
     
  3. About British Insurance Brokers' Association
    The British Insurance Brokers' Association (BIBA) is the UK's leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

    BIBA membership includes just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.

General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.

53% of all general insurance is sold by an insurance broker and they arrange 81% of all commercial insurance business.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 400,000 people a year to access insurance protection through it’s Find a Broker service, both online and via the telephone.

BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.   BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards.