planetc wrote:The problem comes from the size of the claims made. Take Aviva as an example, who are paying out more in claims than they take in premiums, running at a loss with their car insurance business. Hire cars and personal injury claims have sent the payouts sky high in recent years, they don't just pay the cost of repairs anymore.Robsey wrote: Insurance is unfair - you need to speakto PlanetC, isn't Paul's wife an insurance expert..?
Although it may seem so, it's not unfair, the risk is calculated on previous claims experience of age, gender, car and area (and probably other stuff I know naff all about). The Max Power culture is partly to blame, encouraging younger drivers to drive beyond their level of experience. How many 25 year olds these days have never had a claim?
Then when it does go wrong people maximise their payback. I met a girl a while back that was driving a hire car, paid for by her insurance, who were jostling over a claim with another insurance company. She had been driving the hire car for six months and wasn't bothered how long it went on because someone else was paying for her to drive a nice car!
If you ran a business would you run it at a loss?
The problem isn't JUST that the insurance companies are paying out more in claims than they take in premiums it's that the way they actually make money is to use the money you give them to invest in the stock market, and quite frankly they made a fecking hash of that didn't they.
