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
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
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
White Van Man basket
Customers looking for suitable insurance can use BIBA’s Find a Broker service either on 0870 950 1790 or at www.biba.org.uk
Notes to editors –
- 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.
- 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.
For further information please contact:
BIBA press office:
Leighann Forsyth, Head of Communications
020 7397 0223
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.