 | Insurers and reserving properly |
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| Posted By : Bill On 03/07/2017 15:30:00 | |
| There was an article in the paper recently, starting: “Motor insurers suffered combined losses of £3.5bn last year after former lord chancellor Liz Truss changed the rate which calculates deductions from compensation payments to injured people.” That looks to me like outrageous misinformation. How can they assert that losses sustained in the year to march 2017 have been caused by a change which only came into effect on the 30th March 2017?? In any event, surely they have been foreseeing this problem over the last few years? We have all known for a long time that there has been a consultation about the rate, and that it was likely to go down. Shouldn’t the insurers, with billions of pounds at their disposal, have reserved appropriately? | |
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