RE: Direct Line warns second-hand car price surge is inflating accident claims11 Nov 2021 21:31
Banbury, to briefly respond, Laughton has covered most aspects of what I had in mind. All policies are underwritten somewhere, even if not by Acromas (don't Acromas underwrite externally too?) and if cost of claims rise then it follows the underwriters will ask for more going forwards. Saga's 3 year fixed price policies don't tie the consumer (who is free not to renew) but tie the company if they do renew. If insurance pricing has fallen (say 7%) affecting policies being written recently but there are inflationary aspects going forwards, might that be a burden in years 2 and 3 or is that 'risk' covered by underwriters or otherwise hedged. 3 year may be a premium priced product but from what I've seen has discounted 'extras' (like recovery) built in.