Does More Th>n have its own printing press?
According to The Daily Mail, 12 February, More Th>n is writing into contracts that drivers can have unlimited accidents and that "premiums will not rise to fund the no-claims bonuses and (contracts) won't be terminated as a result of very high claims". The moon seems to be made of green cheese.
If this report is accurate and persistent claimants cannot be penalised individually, then the inevitable consequences will be:
1. Claims frequency will rise, as there will be no deterrent to making claims.
2. To fund claims, premiums will have to rise across the board since the culprits cannot be singled out for increases.
3. More Th>n's rates will become too expensive for its good risks who will move to other insurers.
4. More Th>n's book will increasingly comprise only policyholders with bad records who cannot move elsewhere.
5. Unless More Th>n can print its own money, its underwriting promises will lead to its collapse.
I would love to hear how More Th>n can rebut this logic, and to hear other underwriters' views.
G Foster Taylor
Taylor Price & Co