Myclaim Market Update November 2009

Fatal Accidents at Work are at the Lowest Level

The Health and Safety Executive figures indicate record 180 fatal accidents to the year ending March 2009. This compares to 495 in 1981, 368 in 1991 and 251 in 2001. Judith Hackitt CBE, the HSE chair, welcomed the figures. "These statistics are encouraging but there is no magic wand in health and safety. When those running organisations show personal leadership, and when workers are involved in tackling the risks they face, safety can be improved and lives saved - that is how we can turn this encouraging sign into real sustained improvement."

The figures also reveal a downward trend in non-fatal accidents at work as well although there have been concerns that as the economy grows out of recession, the incidences of accidents is likely to rise again.

Surveyors facing increase in indemnity insurance after claims hike

Over the past twelve months, surveyors have faced a four fold increase in claims notification. Following the sharp reduction in the value of commercial property, banks and lending institutions are now seeking to reduce losses by making claims against valuers who carried out valuations on these properties. Following on from the credit crunch, organized crime and fraudsters have been involved in property markets and whilst this has mostly affected residential property there have been repercussions for the commercial sector too.

Swinton Group fined

The Swinton Group has been fined £770,000 by the Financial Services Authority (FSA) for activity related to its single premium payment protection insurance. Swinton has also agreed to refund the premium to any customers who took out the policies. This arose when the company sought to sell the payment protection on an “assumptive” basis, that is customers had to opt out from having it included in the product they were sold.

“Crash for Cash” gang jailed

After a lengthy investigation, members of a criminal gang involved in rigging bogus accidents and then using them to make fraudulent insurance claims. At least 92 deliberately staged collisions are known of and the scheme came to light in 2005 when office workers near a particular roundabout noticed the peculiar regularity with which road traffic accidents were occurring at the roundabout.

The accidents seem to always involve low speed collisions and always involved the same man. AXA Insurance, one of the companies affected, investigated this and presented their findings to the Manchester police.

Uninsured Motorists to be Fined up to £1,000

There are an estimated two million drivers on the roads without insurance. They cause 160 deaths every year. The police also have the power to seize and destroy uninsured vehicles and during 2007 they destroyed 150,000 vehicles in this way.

With access to databases about insured vehicles, the new powers will allow them to track down uninsured vehicles before they are driven and seize them. Additional heavier fines are also part of the package of measure to tackle this long running problem.

Insurers warn of costs of climate change

A report from the Association of British Insurers has warned of the enormous additional costs climate change poses for the UK. Increased flooding and winds will add billions to the annual costs of recovery from disasters, with a four degree increase in temperature predicted by 2060. As well as international measure including the cooperation of developing countries, the ABI wants further flood prevention measures to be adopted in the UK.

RBS under pressure to sell Direct Line, Churchill

To ensure compliance with European Union competition laws, RBS is expected to either sell of divest itself of some of its companies including insurers Direct Line and Churchill. Another RBS brand, Green Flag, is also expected to part of the deal being worked out. RBS is the recipient of state money and as a result its operations have come under scrutiny by the European Commission.

Brit Insurance with positive market results

Lloyds of London insurer Brit reported stronger nine month sales with higher policy renewal prices. Prices are expected to keep rising as a return to growth in the financial markets works through into better results.

UK motor insurance premiums show biggest rise in fifteen years

Roadside assistance company AA have released results of a survey showing that motor insurance premiums have increased at their fastest rate for fifteen years, apparently as a result of increased personal injury claims and fraudulent claims. Further increases, perhaps as much as 20%, are expected with the industry apparently paying out £110 in claims for every £100 it takes in premiums. The biggest motor insurer is the Royal Bank of Scotland through its Direct Line brand.