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Credit Crunch Could Cost Insurance Companies £1.5 Billion This Year July 6, 2008

UK insurance companies could see losses of upto £1.5 billion this year due to the credit crunch. This may seem surprising as insurance is usually compulosry for most people. Car insurance for drivers and buildings insurance for home owners are easy examples, so you would think that insurers would be unaffected by the worsening ecomonic outlook.

It appears that the current problems are causing people to be creative when it comes to cutting costs. Many families are now getting rid of extra cars which means that there are less drivers needing car insurance.

There is also extra pressure on home insurance providers. Its much harder for first time buyers to get mortgages to buy their first property which has slowed down the entire chain. In fact, would-be first time buyers are making a conscious decision to stay in rented accomodation until the money markets improve and borrowing becomes easier. Renters only need contents insurance so the insurers are missing out on the extra revenue from buildings insurance which will cause losses later this year.

One way to control your personal insurance costs is to use a price comparison service offered by sites like Quotezone. You could save up to £200 on your annual car insurance renewal.

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2 Comments

[...] Hot Topics wrote an interesting post today onHere’s a quick excerpt UK insurance companies could see losses of upto £1.5 billion this year due to the credit crunch. This may seem surprising as insurance is usually compulosry for most people. Car insurance for drivers and buildings insurance for home owners are easy examples, so you would think that insurers would be unaffected by the worsening ecomonic outlook. It appears that the current problems are causing people to be creative when it comes to cutting costs. Many families are now getting rid of extra cars [...]

Home Buildings Contents Insurance September 16th, 2008

Home Buildings Contents Insurance

Interesting – because that is the same thing I found out last Thursday.

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