The Market

Rates on the Launch Pad

Insurers are poised to implement rate increases across a range of commercial lines of business. This may have come as a something of a shock, but it is far from being a bolt from the blue.

"…we can expect to see sustainable and continued increases in commercial rates of around 5%." - Grant Ellis, Chief Executive, Broker Network

"We will see an increase of between 3% and 7% across all lines of business. It's about time. What we have to ask is why have we gone so low? - Stuart Reid, Chief Executive, Stuart Alexander

"…AXA will be putting in rate increases of up to 10% for most household and commercial property customers." - Peter Hubbard, Chief Executive, AXA

"…we believe prices are now generally at uneconomic levels." - Peter Cullum, Chairman, Towergate

Quinn-direct Lifts Profits 8%

"Quinn-direct's UK business continues to develop very positively and we expect to achieve further significant growth in that market. We are very pleased with the performance of the business so far in 2007. Despite the competitiveness of the insurance market we have continued to increase our market share in Ireland and the UK and are making good progress in our European business." - Colin Morgan, General Manager, Quinn-direct

R & SA Threatens Cuts in Capacity

Royal & Sun Alliance (R&SA) will continue to withdraw capacity from sectors of the commercial market if market conditions do not improve, its UK chief executive has warned.

The insurer has already withdrawn £50 million capacity from the fleet market because of the impact of fierce competition on rates. The UK chief executive of Royal & Sun Alliance stressed that the company would not write business "…below the technical price."

January 2008