UK motor insurer Admiral Group has confirmed it is not increasing insurance premiums at this point, in what is seen as the likely trend moving forward among its peers.
Speaking with the Financial Times, Admiral group chief executive Milena Mondini de Focatiis said “we are not increasing prices, and we are very committed to trying to be competitive,” adding that car insurers should try to limit premium hikes as much as they can.
It was noted that, according to the CEO, increases in insurance costs had already caught up with inflation, meaning the goal of repricing to counter the inflationary impact had been achieved.
The publication quoted Mondini de Focatiis as saying: “There was a lot to recover, but I think we are in a very different situation now.”
Last month, the Association of British Insurers (ABI) unveiled an action plan designed to lower costs of motor insurance in the UK.
“We know that insurance costs are putting strain on household finances, so we’ve been working hard to find solutions,” ABI’s director of general insurance policy Mervyn Skeet said at the time. “Some of these actions we can do quickly; others will require time or assistance from the regulator or UK governments.
“Regardless, we will continue to do what we can under our new strategy to help consumers access the products that are integral to financial wellbeing and play a key role in the nation’s financial resilience.”
Earlier this year, it was reported that the average price paid for car insurance in the country was £627 during the fourth quarter of 2023. In the same period in 2022, the average premium stood at £470. The full-year average in 2023 was £543.
“Rising repair costs and other factors outside of insurers’ control mean there is no single action that could bring down premiums,” Skeet stated in January. “However, we are determined to do all we can to put the brake on.”
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