Myclaim Market Update September 2009
NHS claims for Hampshire cost £10 million last year
In 2008 the NHS paid out £10 million in successful clinical negligence claims, the majority of it being as a result of treatment at hospitals that are part of the Southampton University Hospitals Trust. NHS clinical negligence claims are dealt with by the NHS Litigation Authority and in practise expert legal assistance is required to deal with a case properly.
AA Insurance says accidents down but claims up
Figures published by AA Insurance refer to the amount of accidents involving injury on UK roads falling by eight per cent since 2008. The Association of British Insurers indicate 1,200 whiplash injury claims per day during 2008. Over a period since 2006 the amount paid out for road traffic accidents has increased from £8.8 billion to £9.6 billion in 2008. Car insurance premiums are rising at the fastest rate since the start of the decade.
Private Equity funds considering investing in UK Law Firms
Major private equity funds such as Fleming Family and Partners and Lyceum Capital Partners LLP have been considering investing in UK law firms as rules relating to the ownership of legal businesses are set to be reformed so that this can be allowed. Other reforms include the possible sale of shares in law firms on the stock market and merging them with other companies.
Interestingly the “magic circle” of the biggest law firms in the UK, based in the City, have indicated they are not interested in outside investments as they do not need the money.
Increasing challenges in UK motor insurance
Mark Christer, a director at More Than, has recently outlined some of the major challenges facing UK motor insurers at present. In particular the growth of online shopping for motor insurance has meant that customers stay with one particular provider for a much shorter time. As opposed to five years on average some years ago, the typical length of time a customer will stay with one insurer is now around one to two years before shopping around to find a cheaper provider.
Another particular problem is that to gain market dominance, motor insurers have been writing policies for volume rather than for profit and Christer thinks this could prove problematic when claims on those policies are commenced.
Co-operative Promoted Legal Services
The Co-operative is set to launch a campaign to promote its Legal Services which will include radio ads and a direct mail campaign. Their services include personal injury claims, will writing and conveyancing.
Aviva launches new health insurance product
MyHealthCounts is a new health insurance policy from Aviva that can provide a lower premium if people are in good health and have a healthy lifestyle. Using an online test, Aviva can calculate a discount based on these factors. The policy therefore provides a positive incentive to lead a healthier lifestyle.
Prudential and Aegon optimistic about future prospects
Two large insurers with substantial businesses in the UK, Prudential and Aegon, have indicated an optimistic outlook on future trading. Prudential’s shares have risen, a particularly good result when set against a sector that has fared badly in the recent downturn in the stock market.
AXA to cut a further 350 jobs
In a continuing bid to reduce costs, AXA will be cutting 350 jobs in addition to previous reductions as it looks to make an annual saving of £150 million. The trade union Unite expressed its concern over these further reductions and stressed the effect they will have on many families at a time of economic uncertainty.
Cowdery in talks to buy Lloyds insurance business
The entrepreneur Clive Cowdery, who recently purchased under-performing Friend Provident through his Resolution business, is engaged in negotiations with Treasury Officials concerning the purchase of insurance assets of the Lloyds Banking Group. Resolution is a Guernsey based company and has been told that the technically foreign-owned nature of the business will not necessarily hamper the deal from going ahead.
BUPA losing customers for private medical insurance
The number of British customers taking up BUPA’s private medical insurance is currently falling at its fastest rate for twelve years. Whilst revenues were stable due to higher pricing and reduced costs, growing unemployment and the effects of the recession have lead to falling numbers taking up the policy, both in the individual and employer sections.