Aon expects rates rise on motor insurance

UK companies renewing their motor insurance policies in this quarter is expected to see an increase in premiums, Aon warned this week.

The survey by the insurance companies brokers predicted a 91% increase in rates for the third quarter.

This is in contrast to the second quarter, when an individual insurer respondents said rates would be suspended.

However, as the recession strengthens its grip companies reduced their fleet of vehicles, and thus their insurance issue, the increase in premiums.

The poll also found 40% of brokers expect the third quarter growth rates for the accident / liability insurance, and 35% expected growth in property insurance.

"Insurers continue to tell us that the fastest growth rates in order to return to a sustainable level of profits," said Steve Redgwell, head of broking for Aon for medium and large companies.

"However, while the reserves are enough surplus in some areas, fueled by new entrants and competition among insurers in respect of the income, is to keep rates down.

"Aon contends that the overall result in minor changes to the real estate and insurance, but it is expected that the growth rates for these categories in Q4.

"There is a strong consensus among the motor insurers' rates will continue to grow slowly for P3 and P4 as the losses are simply unsustainable."