It is right for the insurance market to be concerned about Quinn-direct's entry into the UK motor market (Insurance Times, 14 October).
The latest AA premium index shows that motor rates are continuing to soften - by almost 1% in the third quarter. And I would not be surprised to see that trend accelerating in the final quarter and into the new year, as Quinn marches on.
Given that claims inflation is running at 4% or 5% in the motor market, this continued softening is of a great concern for the market as a whole.
Quinn seems to have developed a model, based around quick settlement of claims, that manages to produce profitable underwriting despite its aggressive pricing strategies. But what of other insurers? Can their profits withstand a price war? One fears not.
The coming months look set to see quite a scrap in the motor market, as the big boys tough it out with newcomer Quinn.
Ben Davies
Nottingham
Letters intended for publication should be sent to: Insurance Times, 30 Cannon Street, London, EC4M 6YJ f: 020 7618 3499 e:
letters@instimes.co.uk
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
