Insurance News November 2006

Posted November 2006

Are you covered for Accidental damage in the home?

Recent Barclays home insurance claim figures relating to 2005 reveal that in January 2005 a 41% increase in accidental damage claims was recorded over the preceding month. The explanation given for the rise is essentially the Christmas party season and the fact that many households invite guests for parties. Inevitably, some objects such as glass or pottery are accidentally broken or liquids are spilled on carpets and other furnishings.

According to Barclays, January’s claim figures were second only to the month of September. Further data confirms that only half of all Barclays home insurance policies include accidental damage cover. As with most insurers, accidental damage cover is usually offered as an option and many consumers choose not to pay higher premiums for this type of cover. The experience of Barclays suggests this is a large risk to take as the average accidental damage claim in 2005 was £4,293.

For more information, consider reading our guide to contents insurance .

Posted November 2006

Since the launch of Admiral’s revolutionary Multi-car insurance policy, the company claimed to have received feedback from some customers requesting that the family nanny, or au pair, be allowed to drive on the policy. These requests coincide with a large increase in the number of households employing either nannies or au pairs and the requirement in some cases for those employees to drive the children they are looking after. Previously, nannies or au pairs who did not live at the same address as the family would have refused, however, Admiral managing director, Sue Longthorn, believes that allowing nannies or au pairs to drive on the multicar insurance policy will solve this problem.

Admiral’s multicar policy was launched earlier this year and is designed for those who wish to insure up to five cars on a single policy. In addition to receiving applicable discounts, Admiral hope to remove the burden of insuring individual cars with either the same insurer or different insurance companies or brokers.

Following the acquisition of Budget Retail from the Budget Group in August this year, Swinton’s Chief Executive Patrick Smith warns of further expansion to ensure the long term expansion of 3 million insurance policyholders is achieved. Unlike the Colonnade branch purchase a few years ago, Smith is quoted during a press release saying "We can afford to buy anything on the market."

Swinton currently administer over 2 million insurance policies through its 442 UK branches which have been bolstered by 92 Budget branches that offered home, travel pet and car insurance amongst other general insurance products. Annual premium income is thought to be in the region of half a billion. To avoid customer confusion and ensure a smooth transition, Swinton has stated it will phase out the Budget brand during the course of summer and autumn of 2007.

It is clear that following the purchase of Budget branches by Swinton, they are now the dominate force on the high street with their closest rivals Endsleigh and A-Plan a long way behind in terms of branch presence in the UK’s towns and cities. It is interesting to note that much emphasis has been placed on internet trading and its growing market share by the media, Swinton however, appear to be focusing on branch selling in addition to the internet.

The Insurance Australia Group Limited or (IAG) as they are more commonly known down under have taken over two leading brands in the UK broker insurance market, namely Hastings Direct and Peoples Choice. Both were previously trading under the holding company Hastings Insurance Services Limited. In addition IAG have also purchased Advantage Insurance Company Limited who specialise in direct personal lines.

In recent years Hastings Direct has become a popular brand in its own right with nearly one million customers purchasing a range of products along with impressive growth statistics to match. The takeover of the aforementioned companies signifies intent by the Insurance Australia Group to grab a market share in the UK general insurance market with particular emphasis on car insurance. IAG are also keen to utilise some of the marketing methods and customer segmentation techniques employed by Hastings to help their businesses back home.

Insurance News for November