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Do The Market Woes Affect The Broader Insurance Market

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Not sure if starting a topic will work, but...

Does anyone know if the market gyrations are affecting the broader insurance market? It hadn't even crossed my mind until I came to re-insure my car today. The premiums had gone up almost 80%! (£500 - £900). Even when comparing various companies, and all without any change in circumstances/accidents. And then it struck me: I wonder if the firms previously parcelled up the insurance like securities or similar? If so, no current market... ...

If this is true (and I've no idea if it is), is Car Insurance in the CPI basket?

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Not sure if starting a topic will work, but...

Does anyone know if the market gyrations are affecting the broader insurance market? It hadn't even crossed my mind until I came to re-insure my car today. The premiums had gone up almost 80%! (£500 - £900). Even when comparing various companies, and all without any change in circumstances/accidents. And then it struck me: I wonder if the firms previously parcelled up the insurance like securities or similar? If so, no current market... ...

If this is true (and I've no idea if it is), is Car Insurance in the CPI basket?

I think one ILS deal for auto policies has been done ever, so no that's not an issue. I believe car insurance policies have simply been hiked due to poor experience, with NU leading the increases. The good news though is that all insurance is in the CPI basket...

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I think one ILS deal for auto policies has been done ever, so no that's not an issue. I believe car insurance policies have simply been hiked due to poor experience, with NU leading the increases. The good news though is that all insurance is in the CPI basket...

Pretty much heard the same thing.

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Insurers have a huge amount tied up in investments - it is where they put your money until you claim. Poor investment returns reduce profitability and inevitably drive up premiums.

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Insurers have a huge amount tied up in investments - it is where they put your money until you claim. Poor investment returns reduce profitability and inevitably drive up premiums.

Nah...main reason is the bottom of the market cycle has come been and gone... now prices are rising, and yours certainly won't be the last. Investment returns generally play a reasonably smaller piece than you might think. Decent investment returns never make up for crappy underwriting. Just add a layer of cream to the cake!

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