(PRWeb UK) April 21, 2009
Despite the recession it is arguable that the UK commercial vehicle insurance industry is in rude health. Although it does have its problems none would appear to be as severe as those affecting other sectors of the financial services industry or indeed the economy as a whole.
A spokesman for Staveley Head, one of the UK's leading commercial vehicle insurance brokers, said "Underwriters of HGV insurance and commercial vehicle insurance have for several years projected an image of stability, but there is an underlying trend that may soon expose that scenario as being a false assessment.
For a number of years commercial vehicle insurance underwriting results have been poor -- invariably running at a loss. Underwriters have sought to sustain dividends to shareholders by subsidising unfavourable underwriting results with additional income from investments, and when this proved insufficient, by drawing on reserves.
In recent years investment income has steadily declined and underwriters have found it necessary to make larger calls on the company reserves. But for how long can this go on?
Reserves are being rapidly depleted and may even be close to running out for a number of insurance companies. When that happens the only option left will be to operate with an underwriting profit and that means increased premiums for commercial vehicle insurance policies."
The Staveley Head spokesman went on to say "Tighter underwriting, resulting in more realistic premiums will happen in the very near future, together with more cost-effective claims services and increased fraud prevention and detection measures. All the major insurance companies are aware of these facts and we expect them all, without exception, to weather the storm."
Staveley Head is one of the leading HGV insurance and van insurance brokers in the UK, and will give you all the advice and assistance you need regarding this matter, including a very competitive insurance quote, if you log on to their website at http://www.staveleyhead.co.uk.