UK: first insurance hike in years brings new profit to companies image

The British car market is somewhat of a conundrum – while the rest of Europe plunged into a six-year delivery slump, they slowly rose to become a key player in the region thanks to outstanding sales and increased investments into motor vehicle production.

While just two decades ago the British car industry looked like a lost cause – with all the national brands sold to foreign companies – the UK is now one of the stars of the auto industry. Fueled by low financing rates and numerous deals, sales have soared and the foreign companies invested billions of euros in added production capacity.

Another category of the auto industry that was unlike typical European markets was the insurance segment – for the last two years motor insurers have been crippled by price decreases brought by the intense competition sparked by price comparison websites. Now, motoring group AA Plc has announced that prices for car insurances have gone up for the first time since 2012. The third-quarter motor Shoparound premiums – which covers an aggregate of the five cheapest premiums – was up 1.2% to 531.33 pounds ($852.25) compared to the second-quarter because of an increase in fraudulent claims. These are the most frequent and expensive type of claims, according to figures from the Association of British Insurers.

Via Reuters