Consumers should “prioritise” when deciding on house insurance

Consumers need to decide what their main concerns are when making the decision on whether they can afford a home contents insurance policy, the British Insurance Brokers’ Association (Biba) has said.

Many policies are not overly expensive and cheaper prices are also available from some major metropolitan authorities and private landlords who buy in bulk, according to Peter Staddon, head of technical services at Biba.

Although this means that it is easier for people on low incomes to gain access to these insurance policies, Mr Staddon acknowledged that “if it comes down to a choice between putting food on the table for the children or insuring the house, the broker is failing”.

He concluded that consumers would have to decide whether home contents insurance was a priority for them, however, he also warned of the dangers and financial consequences that people without house insurance face in the event of a disaster.

Experts have noted that the insurance industry is looking for ways to make home contents affordable for those on low incomes, following the summer flooding last year.

Tags: consumer, insurance brokers association, disaster experts, British Insurance Brokers Association, BIBA, head of technical services at Biba, metropolitan authorities, private landlords

Insurance industry commits to pay out more

The insurance industry’s commitment to pay out more on claims for critical illness, income protection and life insurance has been welcomed by industry experts.

Previously clients, insurers and medical practitioners were sometimes “unsure of what position to take” when dealing with a claim where medical information had not been disclosed unless the customer has deliberately withheld it.

Graeme Trudgill, technical and corporate affairs executive of British Insurance Brokers’ Association, said: “The Association of British Insurers (ABI) are trying to make the situation a bit more black and white to help customers do the right thing and to pay the claim.”

He added that some claims have not been accepted for “various reasons” and critical illness has had a “bad time” in the press.

The ABI changes are hoped to make the process of making a claim more consumer friendly.

According to LifeSearch, one in five critical illness claims are rejected.

However, according to its research carried out in the fourth quarter of 2007, there has been a marked improvement in the number of claims being paid out in the last 12 to 18 months.

Tags: corporate affairs executive, insurance brokers association, black, industry, economics, lifesearch, consumer, quarter

Mortgage lending remains “robust” in 2007

Mortgage lending remained robust in January 2007, according to data released by the Council of Mortgage Lenders (CML).

The CML’s figures show that some £26.8 billion was taken on by borrowers during the month.

Although this was six per cent less than the £28.5 billion lent in December 2006, it compares favourably with the £23 billion borrowed during January 2006.

Michael Coogan, director general of the CML, said that the “robust” start to the mortgage-lending market was set to continue over the next few months.

However, Mr Coogan also indicated that there was a certain degree of uncertainty because of the expectation that there would be a further quarter point interest rate rise during 2007.

“Because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision now,” he added.

Figures released by the British Insurance Brokers’ Association also showed a slight downturn, with the group saying mortgage lending amounted to £5.6 billion last month, compared to 5.7 billion in December 2006.

Tags: expectation, home, mortgage lenders, director, timing, degree of uncertainty, insurance brokers association