It may be no surprise but during periods of economic slowdown insurance premiums and claim across most classes of insurance policy increase. The latest reports suggest we are in the worst economic position since 1980, and it was during the early to mid-1980s that there was a considerable problem in the personal indemnity sector. With most classes of insurance the cause of the increase is straightforward, there may be a rise in petty theft and burglary, so motor and contents policies may increase. There may be more uninsured drivers around, leaving those hit by them to claim on their own insurance-as long as they are covered. Coupled with the introduction of new solvency regulations across the EU, requirements are being imposed on insurers to increase their capital reserves at the very time that stock markets are collapsing and claims levels rising.
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