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Employer pension contributions could break the ‘savings stalemate’ for more than half of people

2012-01-25T10:48:07

The opportunity to benefit from employer contributions remains the single biggest reason for people to stay ‘auto-enrolled’ in new workplace pension schemes, according to latest research from the Association of British Insurers (ABI). The findings come as the Government today announces a clear timetable for the roll-out of auto-enrolment.

The ABI consumer survey* suggests the introduction of auto-enrolment from October could not come fast enough for many as a way of bringing them out of the ‘savings stalemate’. Not missing out on employer pension contributions (47%) and on tax relief from contributions (14%) were the most popular reasons encouraging people to remain ‘opted-in’ to workplace schemes. This clearly shows that people see the value of their money being made to work harder by the extra top ups they will get from their employer and the Government.

Overall, more than half (53%) of people not already in a company pension scheme say they will remain ‘opted-in’ when their employers begin automatically enrolling them in eight months’ time, and this comes before any significant promotion of the new scheme. With a further 30% of people still undecided, we could see even more remaining ‘opted-in’ and saving for their future.

A similar scheme in New Zealand has seen the amount of workers saving for their pension more than double, with more than half of the country’s working population now enrolled**. The UK could see even higher figures as its auto-enrolment arrangements will cover all eligible workers, rather than only those who are changing jobs or just starting work.

Maggie Craig, Acting Director of Life, Savings and Protection at the ABI said:

“It’s encouraging to see a significant amount of people already recognising the value of the incoming auto-enrolment into pension schemes and we are pleased the Government has today announced a clear timetable for its roll-out. Around half of workers are either not saving into a pension or not saving enough, so auto-enrolment will give many people the much needed nudge to save for their retirement and break the ‘savings stalemate’. Whilst current financial pressures can mean building up a sufficient pension pot often gets put on the backburner, people should not ignore the opportunity to benefit from employer contributions and tax relief on their own contributions.”

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ABI RESPONDS TO TRANSPORT SELECT COMMITTEE REPORT ON THE COST OF MOTOR INSURANCE

2012-01-12T08:47:20

Responding to the publication today of the Transport Select Committee report on the cost of motor insurance, Nick Starling, Director of General Insurance at the ABI, said:

“We are pleased that the Transport Select Committee has recognised that spiralling personal injury claims are the real reason car insurance premiums have been increasing and made recommendations for meaningful reform. It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all and the Select Committee’s acknowledgment that the bar to receiving compensation for whiplash is too low is a step in the right direction.

“The Committee is also right that the fees lawyers receive need to be reviewed as they currently add unnecessary cost.

“Every motorist wants the best deal and insurers are determined to deliver value for money motor insurance. Our customers are fed up of getting text messages, fed up of the compensation culture and have had enough of paying higher car insurance premiums to line the pockets of ambulance chasing lawyers and claims management companies.

“We are baffled though that the Transport Select Committee has again called for the transparency of referral fee arrangements of insurers. Referral fees should be banned altogether and not made more transparent - and that ban should apply to all organisations receiving them, not just insurers. Banning referral fees and, crucially, reducing legal costs will improve the situation for customers."

ABI MEDIA CONTACTS OVER CHRISTMAS AND THE NEW YEAR HOLIDAY

2011-12-22T15:58:04

For comment and help with any insurance-related story over the Christmas and New Year period, the ABI press contacts are:

Up to and including 23 December: ABI press office open as usual

24 - 25 December: Malcolm Tarling - 07776 147667

26 - 27 December: Sarah Bailey - 07725 372636

28 – 29 December: Office open. Malcolm Tarling

07776 147667

30 December: Office open. Sarah Bailey

07725 372636

31 December - 2 January: Sarah Bailey

07725 372636

3 January 2012: ABI press office open as usual

AWAY THIS CHRISTMAS? AVOID RETURNING HOME TO THE MISERY OF BURST PIPES

2011-12-22T12:09:20

Homeowners away for the Christmas break are urged by the ABI to take steps to reduce the risk of returning home to the trauma and expense of burst pipes.

At the height of the abnormally cold spell last winter, insurers dealt with 3,500 claims for burst pipe damage every day. The typical cost of household damage caused by burst pipes last winter averaged up to £7,000, but costs can be much more.

If you are planning to leave your property empty - even just overnight - during winter:

· Leave your heating on for at least an hour a day while you are away from home. In severe weather, or if severe weather is forecast, you should leave your heating on day and night at your usual temperature setting.

· If it is very cold, leave the access to your loft open. This allows warm air from other parts of the house to circulate in the loft and will help prevent pipes freezing. Check that loft insulation is laid over, and not under, pipes in the loft

· Make sure that you know where your stopcock is, and that it works so that you can turn off the water supply if needed.

· Ask a friend or relative to visit your home every day while you are away. This will mean that, if you do suffer a burst pipe, it will be detected as soon as possible. Make sure that you tell them where the stopcock is located.

If a pipe freezes:

· Thaw out the pipe using gentle heat like a hairdryer or towels soaked in warm water.

· Move furniture and carpet (where practical) away from the frozen pipe to minimise damage if the pipe bursts.

If a pipe bursts:

· Turn off the water at the stopcock.

· Switch off the central heating to avoid further damage.

· If you have a water tank, drain the system by turning on all your taps.

· Contact your home insurance provider for help and advice. Most home insurers provide 24 hour emergency helplines that can arrange for repairs to be carried out as soon as possible.

Nick Starling, Director of General Insurance, ABI, said:

“When freezing weather arrives so do frozen and burst pipes. Yet taking a few simple precautions, especially if you plan to be away during the winter, will greatly reduce the risk of returning home to problems.

“Home insurance will pay for the often considerable damage caused by burst pipes, but it cannot compensate for the misery and inconvenience that they bring.”

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Don’t start your new year on a slippery slope

2011-12-22T10:53:26

With thousands set to beat the January blues by booking a winter escape, the Association of British Insurers (ABI) advises ski holidaymakers to avoid starting their new year on the wrong foot by making sure they’re covered on the slopes.

Whilst many people rely on annual travel insurance policies, skiers should be warned not to jet off without full winter sports cover. A worrying 31%* believe a standard travel policy will cover them for sports related injuries, such as skiing. And with European destinations like the French Alps and Switzerland being popular, skiers should be warned that the European Health Insurance Card (EHIC) scheme is not likely to cover all costs associated with an accident, like repatriation back to the UK, which over 62%** of people wrongly believe EHIC covers.

A ski injury could dwarf the actual cost of the holiday. Insurers paid out:

£9,420 for medical treatment, airlift and repatriation for a fractured vertebrae of a skier in France
£18,220 for medical treatment and repatriation for someone who broke their leg snowboarding in the USA.

Many holidaymakers were concerned earlier in the season as warm weather threatened to ruin ski trips. Winter sports insurance could cover the cost for transfer to an alternative resort because of lack of snow. And conversely, if the weather takes a turn for the worst, ski cover could also pay out for piste closure due to too much slow or avalanche.

Nick Starling, Director of General Insurance at the ABI said:

“Before setting off to the slopes for the busy ski season, avoid skipping on essential cover and ruining your winter escape. The cost of medical treatment for ski injuries could put most people out of pocket, so it’s vital to ensure you have adequate winter sports cover.”

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Don’t get wrapped up in common Christmas mishaps

2011-12-21T14:20:32

With the festive season well underway – households stocking up on gifts, Christmas parties in full swing and festive travel plans being made – the Association of British Insurers warns people not to get caught out in some of the most common Christmas calamities.

Don’t get burnt out…

Candles are popular at Christmas and the extensive Christmas cooking can mean fire risk is heightened. More than half of home fires are caused by cooking accidents and throughout the year candles start an average of five household fires a day.*

Ensure smoke alarms are fitted, have batteries and are tested. Smoke alarms are absent in 37%** of home fires;
Avoid leaving candles unattended or burning whilst you go to sleep;
Always keep an eye on what’s in the oven or on the stove.

Protect your possessions…

With all the extra gifts in most homes over Christmas, a theft or accidental damage could put a real dampener on festive spirits…and your wallet.

Many insurers automatically increase your contents insurance over Christmas to account for extra presents. Check this with your insurer;
But don’t forget to re-evaluate the value of your contents insurance after Christmas. Expensive gifts may mean your current cover is not enough;
36%*** of all burglaries are opportunistic. Ensure doors and windows are properly locked - even if you’re just popping out to a neighbour for a festive drink.

Be wise, whether you’re home or away…

Thieves target unoccupied homes during the Christmas period. Last year insurers dealt with 10,000 burglary claims over Christmas. And at the height of last winter’s cold snap, insurers handled 3,500**** claims a day for damage caused by burst pipes. If you’re away over the season, take steps to avoid coming home to an unwanted surprise.

Prevent burst pipes by leaving heating on for at least an hour a day, or all day in severe weather;
Get a friend to visit your home regularly whilst away to detect burst pipes or burglaries early and minimise damage;
Make your home appear occupied with timer lighting to deter thieves;
- Ensure any gifts are not on display through windows.

Drive responsibly…

‘Tis the season to be merry…but also responsible when it comes to driving. Last year’s festive season saw 6,662***** arrests for drink driving.

If we experience a cold snap this year, motorists have reassurance that most insurers will not charge them extra for fitting winter tyres

If you’re drinking alcohol, do not drive;
Ensure winter tyres are fitted in accordance with manufacturers’ specifications.

Nick Starling, Director of General Insurance at the ABI said:

“Every year insurers deal with claims that put a real dampener on people’s festive spirits. To make sure the Christmas period is a happy one, don’t forget the common sense precautions that will help protect your home and possessions.”

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ABI PUBLISHES CONSUMER GUIDES ON EXTENDED WARRANTIES

2011-12-20T12:20:39

With many people on the lookout for household bargains during the post-Christmas sales, the ABI has published a consumer guide to extended warranties.

These policies are often sold alongside the purchase of household items such as washing machines, fridges and electrical equipment like televisions, and cover repair costs as a result of mechanical or electrical breakdown after a manufacturer or retailer’s guarantee has expired.

The ABI has also published a similar guide to motor warranties. These cover repair costs after the motor manufacturer’s guarantee has expired.

Both ABI guides set out:

- What policies typically cover

- Typical exclusions

- Points to consider when deciding whether or not to buy an extended warranty

- What to do if you have a complaint

Nick Starling, ABI’s Director of General Insurance, said:

“Customers need to understand fully the benefits and limitations of extended warranties, so if they buy a policy, it meets their needs. These guides provide essential information to help consumers make the right decision.”

The consumer guide to extended warranties can be found here.

The consumer guide to motor warranties can be found here.

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ABI launches consultation to encourage more people to shop around for a decent retirement income

2011-12-20T10:52:04

Many people are still missing out on a better retirement income by not shopping around when they cash in their pension for an annuity. The Association of British Insurers is launching a consultation to find out what more the industry can do to help people make good choices when they retire.

The ABI announced in September that it would introduce a compulsory code, binding all its members, to actively encourage people to shop around. Under the code ABI members will remove the annuity application form from all communication they send to their customers which means customers will not simply be able to roll their pension over into an annuity with the same provider.

Today’s consultation asks for views on this draft code of conduct which will go further than simply removing the application form:

All communication with customers must include a standard statement on the first page about the benefits of shopping around

Illustrations of possible annuities given by the provider which have not been asked for by the customer must follow strict rules to ensure options are comparable and include a very clear statement about the benefits of enhanced annuities due to medical conditions even if the provider does not offer the product

Providers’ sales processes must take customers through the key questions they should consider when buying an annuity.

Maggie Craig, Director of Life and Savings, ABI said:

“We have worked very hard with our member firms to encourage more people to shop around at retirement, but there are still too many people who choose not to. They could be missing out on thousands of pounds of retirement income as a result. We want to do everything we can to help people get a good income in retirement which is why we are asking for views on the code we plan to introduce. We want to make sure our proposals will really make a difference so we will also research what will have an impact on customer behaviour to help people make good choices.”

Since 2009 the number of people buying an annuity from a different provider has increased from 36 per cent to 44 per cent which is encouraging, but there are still a third of people who choose not to shop around.

The ABI is also very interested in hearing views on whether providers’ illustrations of possible annuity options have an impact on customer behaviour and plans to undertake consumer research to gather evidence on whether the code will have the desired effect of more people shopping around.

ABI calls on the Government and Financial Ombudsman Service to adopt a focused approach to publishing ombudsman decisions

2011-12-16T08:59:51

The ABI supports greater transparency but questions whether the publication of all ombudsman decisions is the best approach for providing useful insight, in its response to the Financial Ombudsman Service’s consultation on the issue.

Whilst a small number of consumer complaints can raise broader industry-wide issues, the very individual and unique nature of the vast majority of Financial Ombudsmen cases makes reading lessons into thousands of decisions impractical and potentially misleading.

The ABI would like to see the Government adopt a more balanced approach in its legislation, giving the Financial Ombudsman Service the right to publish only those decisions that may serve a useful purpose for consumers and firms.

Maggie Craig, Director of Financial Conduct Regulation at the Association of British Insurers, commented:

"Whilst the ABI supports transparency, it should be a means to an end, not an end in itself. Government legislation should encourage the Financial Ombudsman Service to work closely with consumer groups and the industry to select the most appropriate ombudsman cases for publication.”

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All I want for Christmas ... are your presents

2011-12-14T14:55:35

The festive season has become the theftive season as thieves increasingly target easy pickings over the Christmas and New Year holiday break warns the ABI.

Last Christmas insurers dealt with just over 10,000 burglary claims over the Christmas period (1.) paying out £15 million. Many of these resulted from thieves targeting homes unoccupied while the owners were away on holiday or visiting friends or family.
With the average family estimated to spend around £375 (2.) on presents for their immediate family this year, the ABI’s advice to ensure that thieves do not ruin your Christmas is:

- Do not draw attention to expensive presents you receive by leaving the packaging visible for the rubbish collection – crush it and bag it up.
- Even if quickly visiting a neighbour to delivery presents always lock your door and shut any windows as it can only take a few minutes for thieves to strike.
- Do not leave Christmas presents in full view in unattended vehicles. If you have to leave them, make sure they are in a locked boot.
- If going away over Christmas make sure your home is secure. Use light timers to give the impression that your home is occupied. Ask a trusted neighbour or friend to keep an eye on your home.
- In crowded shops during the New Year sales always keep your wallet or purse secure as pickpockets love crowds.

Check your home contents insurance as many will automatically temporarily increase your sum insured to take into account the increased value of presents over Christmas. Immediately after Christmas check the value of presents, such as electronic gadgets, to see if you may need to increase the value of your contents cover.

Nick Starling, ABI’s Director of General Insurance, said:

“There is no festive goodwill from thieves, who will not think twice about ruining someone’s Christmas. Now, more than at any time of the year, burglars are looking for soft targets, so don t make it easy for them – taking a few common sense precautions will ensure you are not still paying for Christmas long into the New Year.”

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Notes for Editors

1. Enquiries to:
Liz Forster 020 7216 7444 Mobile: 07717 578 586
Malcolm Tarling 020 7216 7410 Mobile: 07776 147 667
Linsey White 020 7216 7415 Mobile: 07885 998011
Sarah Bailey 020 7216 7514 Mobile: 07725 372636
Adeola Ajayi 020 7216 7521 Mobile: 07725 245284

2. The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It has over 300 members, which together account for around 90% of premiums in the UK domestic market.
The ABI’s role is to:
- Be the voice of the UK insurance industry, leading debate and speaking up for insurers.
- Represent the UK insurance industry to government, regulators and policy makers in the UK, EU and internationally, driving effective public policy and regulation.
- Advocate high standards of customer service within the industry and provide useful information to the public about insurance.
- Promote the benefits of insurance to the government, regulators, policy makers and the public.

The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 26% of the UK’s net worth and contributing the fourth highest corporation tax of any sector. Employing over 290,000 people in the UK alone, the insurance industry is also one of this country’s major exporters, with 28% of its net premium income coming from overseas business.
Insurance and businesses protect themselves against the everyday risks they face, enabling people to own their own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out £147 million in benefits to pensioners and long-term savers as well as £60 million in general insurance claims.

3. An ISDN line is available for broadcasts.

4. More news and information from the ABI is available on our web site, www.abi.org.uk.

Motor insurers committed to providing best possible deal for customers as the Office of Fair Trading launches market study into private motor insurance

2011-12-14T11:07:28

Commenting on today’s report by the Office of Fair Trading (OFT) following its call for evidence into the UK private motor insurance market, Nick Starling, ABI’s Director of General Insurance, said:

"The OFT and insurers both want the best possible deal for consumers so we welcome today’s report. We are particularly encouraged that the OFT recognise the highly competitive nature of the market and the scale of the personal injury problem facing motor insurers – something we have been arguing needs to be rectified for years – and we look forward to continuing to work with the Government to improve the personal injury compensation system.

"The industry has long said that there are unnecessary costs in the system and that there are inefficiencies that need to be addressed - from personal injury to credit hire to credit repair - and we are pleased that the OFT have recognised this in their report.

"As an industry we are absolutely committed to taking action to improve the market for the benefit of consumers and are already working proactively to develop market practices to remove unnecessary costs that drive up car insurance premiums. We look forward to continuing to engage with the OFT as they undertake their market study and we hope that this will lead to improvements in the industry and lower premiums for our customers"

　

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Storm and wind damage - insurance advice from ABI

2011-12-08T16:47:48

Insurers will be reacting quickly to help policyholders who have suffered damage caused by the high winds hitting Scotland and other parts of the UK, says the ABI.

Storm damage, such as that caused by high winds, will be covered by home and business property insurance policies. Comprehensive motor insurance will cover damage caused to vehicles

People who have suffered damage should:
• Contact their insurer as soon as possible for advice and to get the claim moving. Most insurers have 24-hour emergency helplines.
• If necessary, arrange for any temporary repairs to stop the damage getting worse. Keep receipts, as they will form part of your claim.

Nick Starling, ABI’s Director of General Insurance, said:

“Insurers expect bad weather to strike and are geared up to dealing with claims for storm damage. Their number one priority is to ensure that anyone who suffers damage gets their claim dealt with as quickly as possible,”

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Insurers must be in a position to help Europe fight back to growth – ABI

2011-12-08T08:41:10

Regulation must help drive growth not hinder it, the Association of British Insurers said today at a conference to discuss the new pan European set of rules, Solvency II.

The ABI warned that the Eurozone crisis would not hold up Solvency II, but the new rules for how insurers hold capital should recognise the need for investment in long term projects needed for economic growth, such as the UK Government's drive to secure funds for infrastructure projects.

Speaking at the fifth annual ABI Solvency II conference today, Tim Breedon, Chairman, Association of British Insurers will say:

“Solvency II is no mere technical exercise. It is one that comes with heavy social, political and economic responsibility. Solvency 2 must not unnecessarily drive up consumer prices or limit long-term investment. Getting this right is important not just to the insurance industry, but for many millions of our present and future customers, for financial stability in general, and for welfare systems and the broader economic health of member states across the EU. It seems to me that these responsibilities are even heavier today than they were a year ago. The environment is now more uncertain and more challenging than it was then, as the Eurozone crisis continues to unfold and economic growth forecasts are further reduced.

“We want the Government’s plan to drive investment in infrastructure projects to work. This requires a Solvency II regime which enables us to invest for the long-term. It would be a technical and political failure for the UK and Europe more broadly, if we allow regulation to tie our hands and prevent us from playing our part tackling the recession.”

Otto Thoresen, Director General, Association of British Insurers said:

“The volatility and outlook for the Eurozone, high levels of the UK’s structural deficit and rising inflation all make for a toxic combination. Added to this, we have to tackle the implementation of the biggest capital requirements change to the insurance industry in our history, in the form of the Solvency II regime.

“Dealing with Europe’s financial crisis is as much about investing for growth as it is austerity and cost reduction. As we have seen in the UK, a focus on growth is likely to be a major part of government policy across Europe in the years to come.

“While Solvency II absolutely must achieve its primary objective, of enhanced consumer protection, it cannot detract from the agenda to reinvigorate growth in our fragile economy. As we tackle the remaining policy and technical issues during the next twelve months, I hope that assisting growth, will remain at the forefront of both the European Commission and regulators minds.”

Thoresen reiterated that insurers are committed to the implementation of Solvency II but he highlighted that there are wider implications for the financial markets that need to be thought through, as well as a need to ensure that Solvency II will deliver a better deal for pensioners and long term investors.

“We are seeking a balanced outcome to deliver an improved capital model for insurers. One which does not damage long term investment, or the UK’s distinct annuity market. And one which allows the UK industry to deliver valued solutions to consumers.”

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Ice thieves leaving motorists out in the cold this winter

2011-12-08T07:54:20

Motorists leaving their cars to defrost and warm up this winter risk being left out in the cold as thieves are targeting vehicles left unattended in this way warns the ABI. The ABI is warning motorists to brave the cold and stay with their vehicle while it warms up.

Nearly half of motorists (47%)1. admit to leaving their car unattended on frosty mornings while it warms up. Last year the cold weather brought a surge in in vehicles stolen by thieves on the prowl for vehicles left unattended with keys in the ignition with the engine running to defrost:

• Lancashire police logged 27 unattended vehicles left this way over just two hours. In one morning four cars were stolen this way in Greater Manchester.
• Last winter West Midlands Police recorded the thefts of nearly 100 cars that had been left unattended while they warmed up. In one 36 hour period the police force dealt with 13 cars stolen this way.
• In one day, five unattended cars were stolen this way in south Yorkshire.
• A gang of car thieves, known as The Ice Bandits, were jailed after stealing sixteen cars across the north west.

Leaving your vehicle unattended with the keys in the ignition could be seen as not taking reasonable care, and might invalidate any insurance claim if your vehicle is stolen in this way.

Nick Starling, the ABI’s Director of General Insurance, said:

“No one wants to freeze while defrosting their car. But tempting though it is in cold weather, never leave your vehicle with the engine running to warm up while you nip back inside, even if it is only for a couple of minutes, as it only takes seconds for thieves to strike. Stay with your vehicle while it warms up, so that you drive away in a warm car, not a thief.”

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Abolition of life assurance premium tax relief will lead to confusion - ABI

2011-12-06T17:00:55

The Association of British Insurers strongly supports the Government’s efforts to simplify the tax system but believes they have got it wrong on Life Assurance Premium tax relief.

Mark Edwards, Head of Taxation at the ABI said:

“Whilst we strongly support the Government’s efforts to simplify the tax system, we are disappointed that they have chosen to end life assurance premium tax relief. The relief is not obsolete. It still benefits hundreds of thousands of people, many of whom are retired and on low incomes. This move will lead to confusion not simplification. People with affected policies will now have to get to grips with what this change means for them and get financial advice to understand the impact it could have on their policies and benefits.”

Background
Life Assurance Premium tax relief was introduced to incentivise long term regular savings and to encourage people to provide financial protection for their families.

People paying into qualifying life insurance policies taken out before 1984 currently get 12.5% tax relief on their income tax.

In 1984 this was abolished for new customers, but the decision was taken to keep it for current customers as it would naturally end on the death of individual policyholders.

It is estimated that there are still approximately 1.5 million policies in existence, all of which will be affected by the Government’s decision to end the tax relief.

ABI welcomes the direction of the Government’s tax regime reform for overseas subsidiaries

2011-12-06T15:28:30

The ABI welcomes the Government’s announcement today on the direction it intends to take on the Controlled Foreign Companies (CFC) reforms following the consultation over the summer. This shows that the Government remains committed to making the UK tax system the most competitive in the G20, which will be a key driver for growth.

We are pleased that the Government has listened to the concerns of the insurance industry over the complexity of the proposals published this summer. The simpler approach adopted should make the reformed regime less burdensome to comply with and more certain in its application. The regime should be flexible enough to accommodate the specific features of insurance businesses. There is still much to work to do on the detail to ensure that the reforms are a success, not just for the insurance industry but for the competitiveness of the UK tax system as a whole, and the ABI will work with the Government to ensure this happens.

The insurance industry contributes over £10bn a year in taxes to the UK Exchequer despite competition from many locations around the world for insurance business. In the face of that competition, more insurers than companies from any other sector have had to redomicile from the UK to remain internationally competitive. The CFC regime is one of the main areas where the UK tax system still falls short, so its successful reform is a vital part of stopping and reversing that trend. Making the UK more competitive will encourage the growth of UK based insurers and, in turn, the contribution they make to the Exchequer.

Mark Edwards, Head of Taxation, ABI commented:

“The UK’s insurance industry is the third largest in the world and already contributes over £10bn a year in taxes to the UK Exchequers despite the competition from many locations around the world for insurance business. The announcement today is positive for insurers and, while there is much work to be done on the detail, once it is right it will make the UK a more competitive location for insurers which will be positive for both jobs and growth in the UK insurance sector.”

Insurers will be quick to help those hit by bad weather in Scotland says the ABI

2011-11-29T14:54:52

The ABI advises anyone who has suffered flood damage as a result of the heavy rain that has so far hit much of Scotland to contact their insurer as soon as possible.

Nick Starling, the ABI’s Director of General Insurance, said:

“Events like this are exactly why people take out insurance. Insurers plan for bad weather, and will have arrangements in place to minimise distress and inconvenience and help people recover as quickly as possible. Some, for example, will identify and contact their policyholders in areas affected to get any claim moving as quickly as possible”.

People who have suffered damage to their property or contents should:

- Contact their home insurer as soon as possible. Most will have 24-hour emergency helplines, which can give advice on next steps and arrange repairs as quickly as possible.
- If necessary, arrange temporary emergency repairs to stop any damage getting worse. Tell your insurer and keep any receipts, as this will form part of your claim.
- Don’t be in a rush to throw away damaged items, unless they are a danger to health, as these may be able to be repaired or restored. Your insurer will advise.

With the risk of further flooding predicted, people should:

- Move whatever is possible and safe to do so to any upper floors.
- Make sure that you have emergency telephone contact numbers for your insurers, local authority and utility companies in a safe waterproof place.
- Listen out for flood warning on local radio and TV

Household buildings and contents policies will cover flood and storm damage. If your home is uninhabitable, your insurer will usually pay for temporary accommodation while it is being repaired.

Motor insurance covers damage to vehicles under comprehensive policies. Again, contact your insurer as soon as possible to get your claim moving.

Business insurance policies will cover storm damage to premises and stock. Business interruption cover (which may be included or purchased separately) will cover additional costs, such as hiring temporary premises, if needed.

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ABI welcomes opportunity to help the UK fight its way back to growth -ABI comments on Autumn Statement

2011-11-29T13:43:50

On the National Infrastructure Plan, Otto Thoresen, Director General, Association of British Insurers said:

“The bond markets are a huge untapped source of finance and insurers have long been keen to find a way to channel more of the investments they manage into UK projects to help the economy fight its way back to growth. However, without action from Government we would be fighting with one hand tied behind our backs.

“We want to work with the Government to create a new asset class of infrastructure bonds which could see insurers investing in everything from railways to new hospitals. But we must remember insurance and pension funds are investing money people have saved or paid in to protect themselves. Fund managers have a responsibility to make sure the investments they choose deliver for these savers over the long term. That is why we are pleased that the Government has agreed to set up an Insurers’ Infrastructure Investment Forum, which will have ministerial involvement, where we can work together to make sure that the bonds are attractive to a wide set of funds and that regulatory and economic barriers are tackled quickly to make real, significant investment for growth a reality.”

Commenting on the Government’s plans for a business finance partnership
and credit easing, Otto Thoresen said:

“We fully understand the need for initiatives to improve lending at a time when the economy is so squeezed. However, there can be unintended consequences from this kind of action and for us, the devil will be in the detail.”

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Health and safety guide dispels myths and keeps it simple for small businesses and voluntary sector

2011-11-24T10:17:30

Over zealous interpretations of health and safety rules for the voluntary sector and small businesses are tackled in a new guide published by the Association of British Insurers (ABI) today.

The guide gives simple, practical advice to businesses and the voluntary sector to help them assess risk without burdening themselves with excessive concerns. It also offers tips on getting a competitive insurance quote and building evidence of risk management that can be used in defence of a claim.

The five straightforward principles of the guide are:

1. Get evidence of senior management commitment on health and safety issues
2. Designate a competent person to be responsible for health and safety or seek an external specialist
3. Adopt a structured approach to planning, monitoring and reviewing health and safety
4. Complete a suitable and sufficient risk assessment
5. Encourage employees to be supportive of health and safety practices.

Commenting on the launch of the guide, Nick Starling, Director of General Insurance at the ABI said:

“Organisations want to focus on what they do best and insurance is designed to help them not block them, despite what some of the myths would have us believe. The five key principles outlined in the guide provide small businesses and the voluntary sector with much needed clarity on health and safety issues.”

Grant Shapps MP, Minister of State for Housing and Local Government, supported the guide and commented:
"Health and safety needs to be proportionate to risk. All too often tick-box bureaucracy and the fear of falling foul of the rules, gets in the way of common sense, tying up firms in unnecessary red tape and preventing voluntary groups from holding local community events."

For a full copy of the guide visit www.abi.org.uk or click here.

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Tougher measures to improve young driver safety crucial to delivering a better motor insurance deal to customers says ABI

2011-11-22T07:33:21

The urgent need to reduce young driver deaths and serious injuries is one of the five key priorities for the motor insurance industry to deliver a better deal for its customers the ABI said today.

Speaking at the ABI Motor Conference today, Otto Thoresen, ABI’s Director General said:

“As a nation of car users with some of the busiest roads in the world, insurers are committed to providing the best possible deal for motorists.

“One of the key ways to achieve this has to be improving the safety of our young drivers, who continue to make up a disproportionate number of road casualties. Five years ago we called for measures, such as a minimum learning period, to tackle this tragic waste of life, yet every day 18 young people die or are seriously injured on our roads.

“Insurers are actively helping young drivers through the increasing use of telematic ‘black box’ systems that reward safer driving. But we cannot do this alone. So I reiterate our call to the Government to work with us to tackle this issue. The time has come to seriously consider tougher measures such as a zero tolerance drink-drive limit for drivers under 25, graduated licencing, and restrictions on driving at night and in the early hours.”

Otto Thoresen also outlined the other priorities for motor insurers around tackling the rising costs of whiplash, compensation reform, fraud and uninsured driving

“With one person now claiming whiplash on average every minute we must seek better diagnosis of genuine claims, while making it harder to make a fraudulent claim for neck injuries. The long overdue reforms to our dysfunctional compensation system will benefit genuine claimants, deter fraud and, crucially, reduce the excessive legal costs in paying out personal injury claims.

“Latest initiatives in the fight against fraud will see, in early 2012, a new dedicated police insurance fraud unit and an insurance fraud register. And the crackdown on the menace of uninsured driving continues to bear fruit with the number of these illegal and dangerous motorists falling.”

“Few insurance products provoke opinion more than motor insurance. Motorists rightly expect the best value for money products and high standards of service. The industry must continue to up its game to ensure that their expectations are met.”

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