Motor Insurance Companies Bearing Heavy Losses
The 2010 results of UK motor insurers will put further pressure on the car insurance premium rates. The UK insurer is facing losses, which is affecting the car insurance quotes largely, as the company is trying to fulfil the losses through hike in insurance premium. On compare insurance quotes, it was found that there is a rise in the insurance quotes with time.
The insurer reserves topped up in 2010 resulting in strengthening of the insurers since early nineties. The period of unprecedented reserve release ended making the insurer base stronger. However the insurer is still not able to make profits as according to the research for every pound earned by the insurer in premium, there is a loss of 20p towards claim and recovery.
Although the insurance companies sell add-ons and optional extras to the car insurance customers with basic insurance cover but still the monetary loss of underwriting has increased this year. The car owners are buying comprehensive coverage, coverage against natural calamity and breakdown coverage for car safety and with change in their car usage.
The shifting focus of customers must increase the insurance premium account of the insurers but undue and fraudulent claims are depleting the insurer account alongside. Until 2012 the insurance market will remain in loses and recovery will be made from the customers by increasing insurance premium.
The insurers are turning to predictive analytics to know about the future behaviour of the fraud detection, customer and claims management and underwriting. The insurers are trying to enhance the capability of their underwriting through telemetric, geospatial analysis and external data. The insurer for business-as-usual activities as well as making key decision uses the predictive analysis.
Still the rise in insurer losses will pressurise the provider to keep up the insurance prices leading to hike in car insurance quotes.
Article written by the marketing division of Compare.Com.