Latest news with #motorinsurance
Khaleej Times
12 hours ago
- Business
- Khaleej Times
UAE Central Bank suspends foreign insurance company's motor business
The Central Bank of the UAE has suspended the motor insurance business of a foreign insurance company's branch (insurer). The insurer remains liable for all rights and obligations arising from insurance contracts concluded before the suspension, the authority stated on Tuesday, July 29. The legal actions comes after the entity failed to comply with the solvency and guarantee requirements, specified in the law and prevailing regulations governing insurance companies in the UAE. This is not the first time the Central Bank has taken action against a foreign entity's branch. The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh5.9 million on a foreign bank branch operating within the country for failing to comply with anti-money laundering regulations. On July 16, the authority imposed a financial sanction of Dh600,000 on a branch of a foreign bank in the UAE. The apex bank did not reveal the name of the bank that has been penalised. The branch was reported to not be complying with the Market Conduct and Consumer Protection Regulations and Standards. Meanwhile, on July 2, the authority announced it had imposed a financial penalty of Dh5.9 million on a foreign bank branch operating within the country for failing to comply with anti-money laundering regulations. The name of the bank penalised by the apex bank was not disclosed.
Yahoo
3 days ago
- Automotive
- Yahoo
FCA finds external cost pressures driving motor premium hikes
The Financial Conduct Authority (FCA) has confirmed this week that a steep rise in UK motor insurance premiums has largely been driven by rising external costs, not inflated insurer profits, but has warned of persistent shortcomings in how some insurers are managing claims. In an analysis, the FCA revealed that the increasing cost of settling motor claims, driven by higher prices for vehicles, parts, labour, energy, and more complex supply chains, is the main cause behind recent premium hikes. Additional pressure has come from rising costs for hire vehicles, a surge in theft claims, and an increase in uninsured drivers. Despite these external factors, the regulator flagged concerns around poor claims handling practices that may be compounding the problem. In particular, referral fees from credit hire firms and claims management companies were linked to slower claims processing and higher costs for both consumers and insurers. While the FCA observed good practices in parts of the home and travel insurance sectors, its investigation also exposed worrying failings across the industry. These include: Weak oversight of outsourced services, leading to delays and high volumes of complaints; Inadequate management information, resulting in unresolved claims issues; A low payout rate for storm damage claims in 2024, with only 32% of claims honoured in a sample of firms; and Over-reliance on cash settlements, often without assessing whether they were in the customer's best interest. The FCA said it is addressing poor practices directly with individual firms, including taking regulatory action where necessary. It is also feeding its findings into the Government's motor insurance taskforce to help drive coordinated action between regulators, industry, and policymakers to tackle rising costs. The regulator stressed, however, that while such collaboration could help mitigate price increases, it will not be able to prevent them entirely. Premium finance market under FCA spotlight Also released this week was an interim update from the FCA's ongoing market study into premium finance — the additional cost consumers face when they choose to pay their insurance monthly instead of annually. While premium finance can offer greater affordability and flexibility, the FCA warned that some firms are profiting disproportionately from offering this service, charging significantly more than the cost of providing it. The next phase of the study will delve deeper into these concerns, using the Consumer Duty to ensure firms deliver fair value. A final report is due by the end of 2025. Sarah Pritchard, deputy chief executive of the FCA, said: 'Insurance provides peace of mind but people must be confident they can get a fair deal and be treated right when the worst happens. "External cost pressures are primarily to blame for recent motor premium increases, not increased firm profits, but there is some more work to do on claims handling, particularly in home and travel. That's why we're stepping up — making sure claims are handled promptly and fairly and pushing for a coordinated effort to tackle the root causes of rising motor premiums.' The FCA also published a review of its pricing reforms, which showed they have successfully narrowed the price gap between new and existing customers in both motor and home insurance. The reforms have curbed the practice of 'price walking,' where loyal policyholders were penalised with higher renewal premiums. "FCA finds external cost pressures driving motor premium hikes" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
UK's FCA cites external costs behind motor insurance premium hikes
The UK's Financial Conduct Authority (FCA) has found that rising motor insurance premiums are due to 'external cost pressures' and insurers' claims handling practices. The analysis also identified that the rising costs of vehicles, parts and labour, as well as car technology complexities and supply chains, have inflated the premiums. The regulator's report further notes an increase in the costs associated with vehicle rentals, theft-related claims and incidents involving uninsured motorists. It observed that referral fees paid to credit hire organisations and claims management companies have been linked to protracted claims processing and rising costs. The FCA has found concerning claims-handling practices in home and travel insurance, including poor supervision of third-party services, leading to delays and customer complaints and a lack of robust management information systems. It also noted that high rejection rates for storm damage claims, with only 32% resulting in payment, and cash settlements were often used without sufficient consideration of their suitability. The watchdog said it is engaging with the insurance companies identified as having poor practices and is prepared to take regulatory action where it is necessary. Sarah Pritchard, deputy chief executive of the FCA, commented: 'External cost pressures are primarily to blame for recent motor premium increases, not increased firm profits, but there is some more work to do on claims handling, particularly in home and travel. 'That is why we are stepping up – making sure claims are handled promptly and fairly and pushing for a coordinated effort to tackle the root causes of rising motor premiums.' This month, the FCA, along with the Prudential Regulation Authority and Lloyd's, agreed to streamline the approval processes for Lloyd's managing agents. "UK's FCA cites external costs behind motor insurance premium hikes " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
6 days ago
- Business
- Yahoo
Polish insurtech company Trasti garners funding from EBRD
Polish insurtech company Trasti has secured a 88.1m zlotys ($24.3m) investment from the European Bank for Reconstruction and Development (EBRD), in conjunction with the Triglav Group. The capital will support Trasti's expansion plans to enhance its digital insurance offerings, focusing on motor insurance policies linked to Triglav and aimed at improving its reach in the property and casualty segments and technological capabilities. Trasti CEO Janusz Wojtas said: 'Trasti is a modern, future-ready, digital insurer that, thanks to the technology and know-how of its team, is able to create local products based on universal processes – real improvements to the customer experience. 'The investment of the EBRD and Triglav is not only financial support for us but also proof that our model works and works. We will use the funds raised for further bold innovations and questioning the usual patterns." Trasti also plans to elevate its corporate governance standards by implementing the IFRS accounting standards and refine its reporting framework to align with international norms. EBRD private equity co-head Tamas Nagy stated: 'Trasti is a prime example of a high-potential, tech-oriented company that we want to invest in Poland. 'We are pleased to have been able to bring in an experienced international investor like Triglav on board through this transaction and are confident that our partnership will enable Trasti to mature into a market leader.' The EBRD has invested €16bn ($18.77bn) in 560 projects in Poland since 1991. In December, the EBRD and Aon established a €110m facility aimed at aiding Ukraine's economic recovery in the face of conflict. "Polish insurtech company Trasti garners funding from EBRD " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
The Independent
22-07-2025
- Automotive
- The Independent
Regulator finds ‘concerning' evidence of poor handling of insurance claims
Insurers have been told by the Financial Conduct Authority (FCA) to improve their claims handling, following 'concerning' evidence of poor practices in some cases. The regulator said that, while rising motor insurance premiums are largely driven by external cost pressures, shortcomings persist in how some insurers handle claims. FCA analysis indicated that increases in the cost of motor claims – due to higher prices for cars, parts, labour, energy and more complex cars and supply chains – have contributed to premium increases. The cost of hire vehicles, the number and cost of theft claims and uninsured drivers have also risen significantly. This confirms that increased costs outside of firms' control, rather than firm profit, were the biggest cause of recent premium rises in motor insurance. But the FCA did identify that referral fees from credit hire firms and claims management companies were associated with slower claims processing and increasing costs. Where it has seen poor practice from firms, the regulator said it is addressing it directly with them, including taking action against specific firms where necessary. The regulator said that 'concerning' evidence of poor claims handling practices included a lack of oversight of outsourced services, resulting in poor customer outcomes, delays in settling claims and high complaint volumes. It also found evidence of insufficient management information, resulting in failures to promptly identify and resolve claims handling issues. Cash settlements were also being used in some cases without sufficient consideration of whether they are most suitable, the regulator said. The FCA also highlighted high rejection rates for storm damage claims, saying only 32% of such claims made to a sample of firms in 2024 resulted in a payment. The regulator is also providing evidence for coordinated action from Government, industry, and other regulators, as part of the Government's motor taskforce, to help drive down the cost of motor premiums. This could help limit cost increases but it cannot prevent them, the FCA said. It has also published an interim update of an ongoing premium finance market study investigating whether consumers receive fair value when choosing to pay for insurance in monthly instalments. While premium finance allows customers to spread costs, making them affordable and providing flexibility, the regulator has found some firms earn much more money than it costs to provide the service. It will explore these concerns further in the next phase of the study. The FCA said it will seek to tackle any issues it finds first through the Consumer Duty, publishing a final report by the end of 2025. Sarah Pritchard, deputy chief executive of the FCA, said: ' Insurance provides peace of mind but people must be confident they can get a fair deal and be treated right when the worst happens. 'External cost pressures are primarily to blame for recent motor premium increases, not increased firm profits, but there is some more work to do on claims handling, particularly in home and travel. That's why we're stepping up – making sure claims are handled promptly and fairly and pushing for a coordinated effort to tackle the root causes of rising motor premiums. 'A well-functioning insurance market helps consumers navigate their financial lives and supports growth by building people's resilience to financial and personal shocks.' The FCA also said that evaluation of previous pricing reforms showed they are having the intended impact on the price gap between new and existing customers in both the motor and home markets. This means its reforms were effective in curbing 'price walking' where loyal customers were charged more at renewal, the regulator said.
