The overall cost of policies fell by 2.5% in Q3 2014 compared to Q3 2013. This reflects a 3.5% decrease in the cost of commercial vehicle policies for SMEs.
According to BIBA, The mid-market basket for commercial businesses has seen an increase of 1.6% in Q3 2014 compared to Q3 2013. This is mainly because the combined liability section of the basket has seen a 6.4% increase this quarter whilst other areas of the basket reduced or remained flat.
‘Much of the work the insurance industry has undergone with Government has been aimed at reducing the cost of insurance for families and small businesses and the latest BIBA-Acturis price index results show the industry is doing everything it can to offer competitive premiums as prices continue to fall in these areas,’ commented Graeme Trudgill, BIBA's executive director.
‘Despite an annualised Retail Prices Index increase of over 2%, individual consumers and SMEs continue to enjoy reductions in premium and the market shows little sign of let-up in competitive intensity in these segments,’ added Theo Duchen, Co-CEO of Acturis. ‘In the mid-market commercial segment we have seen a small increase this quarter but taking into account the small fluctuations in average premium from quarter to quarter, the reality is that the pricing in this segment is pretty stable despite inflation.’