BIBA announces consumer insurance 5% drop from `13

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BIBA announces consumer insurance 5% drop from `13

Insurance broker trade association BIBA announced  on 24th April, that their `consumer shopping basket` tracking Home, Motor, SME, large commercial and `White Van Man` (i.e. manual trades) insurance premiums has shown in the latest stats that Motor Insurance premiums continue to reduce for consumers. This, along with a reduction on household premiums, has resulted in the average cost reducing by around 5.5% compared with 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 the industry has made with reducing uninsured driving and the reforms of the legal system which have reduced he costs of claims. Brokers are telling us that strong competition is also driving the reduction.`

For SME insurance average premiums remain steady when comparing Q1 2014 with Q1 2013. Commercial vehicle premiums have reduced by 2% and commercial package premiums have reduced by around 3%. Premiums also appear not to have been impacted by any major claims events recently which helps to maintain premium levels.

Larger commercial premiums have mostly been 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 this type of policy.

Average premiums for `White Van Man` such as a plumber, have also remained static with commercial vehicle reducing by around 2% and tradesman`s package policies increasing around 5% compared with last year.

This message was added on Monday 28th April 2014