The Reader: Insurance firms have lost trust of customers

We are losing trust in insurance firms. A third of customers do not have confidence that their insurers will deliver on claims and two-thirds of people believe insurers will do whatever they can to avoid paying out, according to YouGov.

These reports coincide with news from the Financial Conduct Authority that six million insurance customers pay too much, and many of these are vulnerable people.

Car insurers in particular have had their way for too long. Reforms to compensation for people with serious injuries will save the industry £300 million a year. Compensation paid to people injured in crashes has been blamed for rising premiums even though the cost of these claims has plummeted. Meanwhile, vehicle repair claims have soared.

Every day hundreds of people are injured through no fault of their own and they deserve a caring response, not to be made to feel guilty for costing insurers more than they’d like.
Mike Benner, CEO, Association of Personal Injury Lawyers

Editor's reply

Dear Mike
On one hand you want higher payouts, while on the other you say premiums should be lower. Unless you want all our insurance firms to go bust, you can’t have it both ways.

Compensation for injuries has been lowered by the Government but for good reason. Previous calculations were made on the basis that victims would invest their award with a return over the rest of their lives of minus 0.75 per cent a year. That’s absurdly low, even with current rock-bottom interest rates.

The expected return rose this year, though only to minus 0.25 per cent. You beat that with Premium Bonds even if you don’t win.

I don’t expect you to shed a tear but car insurance is so competitive that most companies will make losses this year and next. That said, I do agree that insurers penalising loyal customers and also offering discounts for new ones is shocking. The Financial Conduct Authority is finally thinking about curbing the practice but has been too slow to act.
Jim Armitage, City Editor

Faiths must unite against hate crime

As faith leaders representing different religious groups, we often hear about hate crime from those we represent, and continue to be saddened by the attacks they endure.

In the past year there has been a three per cent increase in hate crimes recorded by the police. In Hate Crime Awareness Week, we ask Londoners to show defiance in the face of anyone who might try to cause division by reporting and speaking out against the crime.

We must not let hatred and prejudice divide us but continue to work towards a peaceful and unified society where different faiths and groups can live cohesively.
Mustafa Field, OBE, Faiths Forum for London

XR needs to keep up the protests

As we approach the end of two weeks of planned Extinction Rebellion activities, the police have made the unprecedented decision to proclaim a Section 14 notice across London and ban further activities.

As a Jew I am especially sensitive to the need for all, but particularly the state, to respect and enact just laws.

I am also a respectable, elderly rabbi who, this week, chose to be arrested.

My reason was that we are hurtling towards the abyss. Global carbon emissions rose by more than two per cent in 2018, reaching a new high, and now we have only 18 months left to sharply decrease the emissions curve to have any chance of meeting less than 2°C of warming in accord with the Paris Agreement.

Extinction Rebellion must escalate its non-violent activities. The public must become aware of the urgency of action and the need for government to take a lead. There will be more disruption and much to celebrate as we learn that we can live well with less, developing bonds of love across all communities, races and religions.
Rabbi Jeffrey Newman, Finchley Reform Synagogue