Hugo 356 wrote:Related to Pandora lifting the lid on inflation; insureres are regulated to hold large amounts of capital (in respect of the premiums you pay up front and money set aside for large injury claims) in low risk (of default) gilts - government debt. As interest rates rise, gilts prices drop so insurers have a hole on their balance sheet they need to fill by charging you more.
The same principal has generated losses estimated at £270bn on successive government's quantitative easing schemes (or should that be scams?) so expect Insurance Premium Tax to keep going up too...
It is fairly complex but this is right on the money. Add in lack of cheap capital for new entrants and MGAs, a huge increase in reinsurance cost, major insurers re-evaluating their offerings after years of losing money and you have what is happening now. Home insurance is a bit behind the cycle, but rates are rapidly hardening, again not helped by inflation (materials and labour) and losses in prior years no longer being cross subsidised by other products like Motor. Regulation has made everyone refocus how value is created and over what term.
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93 964 C2
99 Boxster 2.5 > 2.7 hill climber
71 914/6 3.0 - gone
'You see Paul, hill climbing is like making love to a beautiful woman. You get your motor running, check your fluids, hang on tight and WHOA..30 seconds later it's all over!' Swiss Tony
The Financial Conduct Authority's Consumer Duty legislation comes into force this summer, which requires insurers and vendors of all financial products to only sell products which offer genuine benefit to the consumer. This probably adds a lot of regulatory risk for vendors so I wouldn't be surprised if this is a factor in increasing prices.
For example... previously it might have been lawful for an insurer to sell you a policy knowing there was some inaccurate detail in your policy which rendered your insurance invalid in the event of a claim. But now Consumer Duty is in effect, the regulator would come down hard on an insurer for mis-selling a policy it knew to be worthless. Consumer duty is a little vague and it's unclear as yet how it will be enforced, but insurers are probably being careful and factoring the extra risk into policy prices until its impact is clearer.
In combination with all the other factors mentioned above it makes for a perfect storm.
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1970 911T, Signal orange (Restoration thread)
1988 3.2 Carrera backdate, Black
2001 996 Turbo, Lapis blue (am I allowed to put that here?)
I'm looking for a pre-impact bumper 911S or other high-revving 911 to restore - please let me know if you see one.
The price increase has nothing to do with the risk or the price of anything. It has to do with the sad fact that our government thinks the only way the UK can make money is through financial services, especially since the scandalous megaspaff on Covid PPE. If you think of anything that you're getting shafted on these days, you can bet it is to the benefit of financial services...
I've noticed this reoccurring pattern...
Some 'new rule' gets introduced by government. Common examples are indemnities, damage liability. E.g recently landlords can only withhold a maximum of one months rent to cover damage from a tenant, regardless of the amount of damage. But then, woohoo! you can get insurance to protect you! Guess who the winner is?
Recently I was quoted car insurance and told that SD&P no longer included commuting to work. What? Since when? Combine that with the fact that half the population don't commute to work anymore since the pandemic, there is simply no tangible reason for the increase.
Fun fact time: Up to around 1992 you could self-insure your cars by putting a deposit of £15k with the senior courts. Around 1992 it went up to £500k, a few years ago it was done away with altogether, so you now can’t self insure and the insurance co execs and share holders can get even nicer hats.
Jonny Hart wrote: ↑Wed Aug 23, 2023 8:51 pmour government thinks the only way the UK can make money is through financial services
Simply not true, there’s also the arms trade and Princess Katie merch.
I so wish this was remotely true. If so why did they waste years discussing fishing during Brexit and completely abandon the city!!
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“A REMINDER. I would be grateful if those members who have borrowed bits from me in emergencies (e.g starter motor, oil cooler, etc) would return them and/or contact me”. – Chris Turner RIP
neilbardsley wrote: ↑Thu Aug 24, 2023 10:41 pmI so wish this was remotely true. If so why did they waste years discussing fishing during Brexit and completely abandon the city!!
Maybe consider standing for the Great Grimsby seat at the next election on this issue. I bet they don’t even realise how much London has had to suffer so they can swan around in their fancy boats.
Graham, I think you are over 50!!?? Try Saga - I paid £266 for my 3.2 Boxster with max no claims. Renews in 218 days so I'll have to see what happens then.
RRs have a unique set of issues Graham and not at all related to the broader market
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93 964 C2
99 Boxster 2.5 > 2.7 hill climber
71 914/6 3.0 - gone
'You see Paul, hill climbing is like making love to a beautiful woman. You get your motor running, check your fluids, hang on tight and WHOA..30 seconds later it's all over!' Swiss Tony
Land Rover have had big issues with thefts due to the keyless entry etc . I had my defender recalled in for a security update which I gather now means the car can't be driven away without the physical key being present ?
My 2014 Skoda Superb has keyless locking with just the fob present, but you do need to be about 2 meters away or less to activate the handle touch 'switch'.
When I worked in the automotive industry i did a lot of central door locking systems all over the world and Rover then had a phrase: More Security, less convenience.
Then, in the late 80's you had CDL with the key in the driver's lock barrel, then 'plip systems' with a working range of about 100 yards which had it's own issues and more designs to ease the 'task' of locking the car and starting it. Keyless is silly, but great if you want to nick the car...
73T 911 Coupe, road/hillclimber 3.2L
Lola t 492 / 3.2 hillclimb racer
Boxster 987 Gen II 2.9
It helps if the keyless signal is encrypted better. Problem is, if someone wants a car they will take it, no matter how good the security measures are. Jammers for data logging, in trackers, shielded fully enclosed car transporters................worst still breaking into the owners house to steal the keys.
