BRITISH INSURANCE PREMIUMS TO SKY-ROCKET IN 2009

Leading Lloyd's of London Insurer Amlin in tonight's (12.01.2009) Evening Standard's Business section, page 28, as authored by Simon English have claimed the UK insurance market will see a 'cut-throat' approach to writing premiums with insurers no longer chasing market share at the expense of profits. Insurers are said to be taking a cautious approach to managing risk in the wake of the Global financial crisis, predicting an increase of close to 20% for motor vehicle insurance.

"The impact of last years hurricane activity and the recent dislocation in capital markets has started to drive firmer reinsurance rates, reversing last years falling trends..........
We are through the bottom of the insurance cycle with strong prospects for hardening rates across our business.......It has dawned on the sector that they need to be disciplined. The fallout of the banking crisis has reminded people that they need to price things properly"

Amlin took premiums of £1.02 billion in 2008, 2% down on 2007.