Motor rating: direct writers

Document description

A recent development within the UK personal insurances market, and especially the private car market, has been the establishment and rapid growth of a number of insurers selling direct to policyholders, i.e. without any form of intermediary. Direct writers are commonly perceived as posing a serious competitive threat to other insurers.Is it the case that direct insurers have been particularly successful in selecting "good" (i.e. profitable) business, while charging highly competitive premium rates? If so, to what may this success be attributed, and is the success likely to continue? What are the implications for other insurers?Opinions differ regarding answers to the above questions. In this workshop an attempt will be made to examine such questions and perhaps to dispel a few myths. Some extracts from DTI Returns will be shown.