News Round-up: Interesting Insurance Stories in the Headlines

lifelineBIBA throws a lifeline to businesses at risk of flooding

Homeowners recovering from the recent floods can take some comfort that they will have access to affordable home insurance thanks to ‘Flood Re’. After years of negotiation between the government and the insurance industry the scheme comes into effect in April and has been widely welcomed across the board, with one exception. Until now business premises have been excluded from the agreement and small business owners in flood prone areas have been bracing themselves for prohibitively high premiums.

Fortunately, the British Insurers Brokers’ Association (BIBA) has stepped in and announced they are working on a solution to provide affordable insurance to SMEs. The Federation of Small Businesses reported that last year 75,000 SMEs in flood risk areas experienced difficulty finding insurance and 50,000 were refused cover.

If you thought five-star hotel beds were expensive; think again!

With travel insurance policies costing less than the price of airport parking the vast majority of holidaymakers agree that it’s short-sighted to jet-off without cover. However, one in five holiday makers take a gamble by heading overseas without insurance. Insurers pay out over £4 million a week to policyholders seeking medical treatment abroad and a new study has revealed the most expensive countries to get a hospital bed. Singapore tops the list where hapless travellers are expected to cough-up £430 a night and that’s before medical costs. Next comes the USA where an overnight stay in hospital will cost £362 followed by Hong Kong where you can expect to spend £347 a night.

It could be bumpy road ahead for motorists

Motorists celebrating falling fuel prices at the pumps are in for a shock as car insurance costs are set to rise. After three years of falling premiums (largely thanks to a clampdown on referral fees) costs are climbing as the industry struggles to deal with £2 billion worth of annual whiplash claims. Premiums climbed by 7% in the last financial quarter and analysts predict the trend will continue. In order to combat the growing problem of fraud the government and the insurance industry have redoubled their efforts with the Chancellor of the Exchequer announcing a clampdown on whiplash fraud in the Autumn Statement.

A quarter of family breadwinners don’t have life insurance

Nobody wants to think about the unthinkable, but a report by the Association of British Insurers has cast light on the importance of life insurance for family breadwinners. The report revealed that one in four adults with dependants did not have any life insurance meaning; their families could face financial difficulty if the worst happened. Having crunched the numbers, the ABI calculated the gap in cover for the 8.5 million breadwinners without insurance adds-up to a staggering £263 billion. Men were more likely to be uninsured than women with 45% of males without cover compared to 38% of females. With life insurance policies costing much less than you might think, perhaps it’s time for you to review your family’s financial plans?

The cheapest and costliest places to insure your car

Every driver knows that car insurance premiums are calculated to reflect risk and where you live plays a large part in how much you have to pay. You won’t be surprised to read that the most expensive place to insure a car is London but you might be surprised by just how much premiums jump compared to the cheapest postcodes. Residents of Dumfries in Scotland pay an average of £265 for annual cover compared to East Londoners who have to pay £870 a year.  The national average is currently £440 per annum.

 

 

 

 

 

 

 

 

 

 


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