VAN INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 9 MAY 2014:
Oh those poor van insurance providers – they’re suffering under a truly horrid dip in revenue right now. Luckily it will be over quite soon for them!
Yes I know I’m sounding a bit facetious, and that’s because I can be after hearing this doozy of a news story earlier this week. Van and car insurance providers have finally revealed their first quarter figures, sighing theatrically and making a big show of having to somehow deal with a paltry 10 per cent decrease in income. You’ll have to excuse me if I don’t immediately go all misty-eyed, especially since most insurance outfits make money hand over fist.
Competition was said to have been a factor at play for the first three months out of the year according to most analysts, but lest we forget that insurers have been doing their best part in bringing this on themselves. Residential and commercial van insurance providers have cracked down on fraud seriously, bringing down their operating costs by a sizable margin. The knock-on effect of this (or at least should be this) is the fact that with fewer spurious accident claims being made there’s a real drop in compensation payments that insurers have had to pay out – and that means there should now be less opportunity to raise honest motorists’ rates in order to make up for any fraud shortfalls. In other words the roads are safer and motorists in general are benefiting from the drop.
At the same time, this little dip is going to have a negligible affect on the industry in general, and the nation’s insurance brokers feel the same way.In fact, more than 50 per cent of brokers surveyed in an independent survey felt that by the end of 2020 that revenues for the insurance industry will go up anywhere from 10 per cent to 15 per cent. When we’re talking millions and millions of our hard-earned cash to begin with, even a 10 to 15 per cent hike is going to add up to quite a bit of cash in the end isn’t it?