More likely to claim and be total loss not to mention serious accident risk to person. Bit it does seem odd
It's amazing what an absolute drubbing on testpilot does plus a shitty email. I have had their most polite and grovelling chap on the phone, just after an email to confirm I had left them and how did they do. I'm not sure the left arm knows what the right is doing. Grovelling chap was happy to refund the overpayment plus another £14.00 less two days cover, complete and unreserved apology and the promise of fantastic service in future, so for the record my premium is now £320.00 with all the bolt ons which I thought was OK. It's worth having a go sometimes, insurance is a minefield.
Apart from threads about which tyres, pressures, oil, levers etc. insurance must be up there with the most common. Insurance (not just bikes and cars) is a piss take and it really should be better regulated and structured so we all have a bit more certainty and comfort that we are not being shafted.
Insurance companies make almost nothing from insurance. The brokers and aggregators make loads! That’s where the fat is.
Check it out. The likes of Aviva, RSA etc on premiums make nothing. Of £100 going in, most have about £20 in admin and running cost, and the £80 normally runs at £78 being paid in claims. Or put aside as future provision on potential claims. On personal lines anyway. Got each £100 you pay? About £30 will be to broker and £70 to the insurer. Generalising the market obvs, not all are same an commercial works differently.
Example. One insurer I know has 5bn income, makes a loss on its insurance business and a billon on its property investments.
Aviva operating profit reached an all-time high, and amounted to approximately 3.81 billion British pounds as of 2019, am increase of 180 million British pounds when compared to the previous year. https://www.statista.com/statistics/493798/united-kingdom-aviva-operating-profit/ Seems like they are doing very well thank you very much.
It depends how much one percent profit equates to. There are hundreds of insurance companies in this country alone and a lot of their products are compulsory for many people ( motoring, building if you have a mortgage, public liability, etc )so it clearly isn't a bad business to be in.
Sigh. Not from the premiums they charge for insurance. It’s other investments they make with the money they collect. This was about how expensive insurance is: I simply pointed out most insurers run at barely break even for premium income, brokers make shed loads
And it’s something many don’t realises about the risk of all this ‘we don’t need premises’ stuff. No commercial markets, no tents, no profits, no pensions, prices go up for insurance
Bradders, photocopier companies never used to make a dime out of the machines, but they made a fortune from the maintenance of the machine and the paper. And sigh, I never felt bad for them either.
