Car insurers lead market gains after AA data on premiums

22nd Oct 2014 15:52

British car insurers were the best of the lot in the London market after motoring group AA reported that Shoparound premiums - an aggregation of the five cheapest premiums available - rose by 1.2% in the latest quarter to reach £531.That was the first increase since early 2012, although they were still 14.4% below the year-ago levels."This suggests that while there continues to be keen competition amongst the cheapest car insurance providers, claims pressure is pushing premiums up," the AA said in a statement.Interestingly, AA said claims management companies and law firms may have found loop-holes around the government reforms put in place to brake fraudulent and exaggerated claims.As of 15:30 shares in Direct Line Insurance were to be seen higher by 3.21% to 2,799p and those in Admiral Group by 2.74% at 12,770p.