Rsa insurance

Doom

It seems to be a bad week in the news for them, I wonder was their 13% increase to plug this hole before someone caught up with them....

http://www.independent.ie/irish-news/insurance-boss-suspended-in-probe-29738520.html

http://www.independent.ie/lifestyle/rising-car-insurance-is-driving-me-up-the-wall-29733231.html

...makes you wonder how a hole of 60million can develop in a industry where money is highly monitored.

This can only be bad news for us all, especially if they are the biggest general insurer in Ireland

ytpe2r5bxkn0c1

Doom wrote: »

It seems to be a bad week in the news for them, I wonder was their 13% increase to plug this hole before someone caught up with them....

http://www.independent.ie/irish-news/insurance-boss-suspended-in-probe-29738520.html

http://www.independent.ie/lifestyle/rising-car-insurance-is-driving-me-up-the-wall-29733231.html

...makes you wonder how a hole of 60million can develop in a industry where money is highly monitored.

This can only be bad news for us all, especially if they are the biggest general insurer in Ireland

480 million profit in 2012, 613 million in 2011and 474 million in 2010. I think the group can carry 70m plus the storm costs without too much problem.

Doom

Ya...as if they will carry it.....
We will ( policy holders)

Doom

ytpe2r5bxkn0c1

Doom wrote: »

Ya...as if they will carry it.....
We will ( policy holders)

You're well named!

kencoo

When it comes to "profit" insurance companies operate differently to most other industries. Premiums collected in one year may not actually be realised until many years later. For X amount of premium the company must have Y amount of capital to match it. Capital is rarely if ever used on a day to day basis.
In this case RSA needed €100m capital (according to RTE). Despite what the spin doctors say thats a major amount for this country.
Quinn also made "profits" in the range of €100m per year but where are they now?

ytpe2r5bxkn0c1

kencoo wrote: »

When it comes to "profit" insurance companies operate differently to most other industries. Premiums collected in one year may not actually be realised until many years later. For X amount of premium the company must have Y amount of capital to match it. Capital is rarely if ever used on a day to day basis.
In this case RSA needed €100m capital (according to RTE). Despite what the spin doctors say thats a major amount for this country.
Quinn also made "profits" in the range of €100m per year but where are they now?

You are stretching it there. There is no comparison here to the practices with reserves in Quinn - it's quite disingenuous to suggest otherwise.
I am perfectly aware how accounts are formulated and capital accessed. RSA will feel this drop but it is no huge worry. The UK storms will be a bigger issue for them (and many other companies) than this.
I'm with RSA for home and car insurance and I'm canny enough financially so we I'll wager my premium next February and March for my cars will not rise over and above the industry norm. House insurance in March also will be in line with competition.

Doom

Prices will stay the same....its the excess on the policy's that'll shoot up

ytpe2r5bxkn0c1

Doom wrote: »

Prices will stay the same....its the excess on the policy's that'll shoot up

You have absolutely no basis for that assertion. For the past 3 years RSA have been reducing excesses and adding additional free cover on policies (at least on my policies and I am unaware of the situation with other companies) so I can't see you being correct there? However , I'd be interested in what you base the hypothesis on but i'm not going to drag the thread away from Consumer Issues in the process?

coylemj

I'm not aware that RSA premiums were particularly lower than other companies so its unlikely that the hole in their accounts was caused by selling policies too cheap. It's more likely that the Irish branch either deliberately or through shoddy practices understated the claims pipeline in the accounts they submitted to the parent company with two results: (1) the reserves were allowed to drop below what was required to cover the prospective claims and (2) the Irish branch was made to appear to be more profitable than it really was.

Doom

Wake up mate....insurance companies are losing business and its a race to the bottom in a price war, so what do they do, in small writing they put up the excess on the policy

Doom

My dads house insurance excess went from 200e to 1000e, but the policy price came down.

Doom

coylemj wrote: »

I'm not aware that RSA premiums were particularly lower than other companies so its unlikely that the hole in their accounts was caused by selling policies too cheap. It's more likely that the Irish branch either deliberately or through shoddy practices understated the claims pipeline in the accounts they submitted to the parent company with two results: (1) the reserves were allowed to drop below what was required to cover the prospective claims and (2) the Irish branch was made to appear to be more profitable than it really was.

I'm not saying this is what happened in RSA, my recent comments are about insurance companies in general... they rarely lose

wmpdd3

I was with Tesco car ins for years, until RSA took over. 3 years in a row they increased the premium by over 20% but matched it every time I showed them other lower premiums, this year I couldn't be bothered, just moved.

ytpe2r5bxkn0c1

Doom wrote: »

I'm not saying this is what happened in RSA, my recent comments are about insurance companies in general... they rarely lose

There you have it! You were not even talking about RSA! I was. I am a customer of theirs. You are just generalising and stereotyping.

ytpe2r5bxkn0c1

wmpdd3 wrote: »

I was with Tesco car ins for years, until RSA took over. 3 years in a row they increased the premium by over 20% but matched it every time I showed them other lower premiums, this year I couldn't be bothered, just moved.

That's interesting because i' m with RSA through a group scheme and the premium on home and car came down in 2011 was static in 2012 and reduced in 2013 while they reduced excesses this year and added additional cover to all policies. Perhaps the portion to Tesco put yours up. I don't know.

Doom

Do you work for RSA?

kkelliher

Insurance companies change their risk profiles, relating to location, age, car size etc etc on a regular basis so depending on your profile some premiums will move up down or stay flat.

ytpe2r5bxkn0c1

Doom wrote: »

Do you work for RSA?

Always thrown out there when somebody disagrees and actually praises or supports a company! No, I most certainly do not work for RSA: merely a customer and someone with an interest in finance. I have been with them for about 5 years and was with Aviva/Hibernian for 25 before that and general accident too at one time - just in case you want to accuse me of any further bias.

Doom

Well you're doing a lot of 'up talking' the business....had to ask :-)
In my experience policy excess's are rising, maybe in your group policy its not.

Wasn't there another news story recently about insurance industry under paying on claims too, any how RSA are in the ****, the stocks will hammer them on Monday

dudara

Moved to Banking & Insurance & Pensions

dudara

Pablo Sanchez

Doom wrote: »

Well you're doing a lot of 'up talking' the business....had to ask :-)
In my experience policy excess's are rising, maybe in your group policy its not.

Wasn't there another news story recently about insurance industry under paying on claims too, any how RSA are in the ****, the stocks will hammer them on Monday

Have been with RSA for Car and Home insurance (through Tesco) for the last three years, and my premium has fallen on both each year.

Oh and the excess has not changed, i could increase the excess should i choose, but i dont think its worth it just to spare a few euro.

wmpdd3

We also were through a group scheme with a 20% discount, but the minimum policy amount was €262, the minimum 5 years ago when I joined was €219. I was always quoted the min price, so the 20% discount wasnt applied anyway.

This year they quoted me €370. There was so much not included that adding these just brought it up to high.

When I questioned it they pulled the 'no longer a discount for being female thing'

€280 for ins with Liberty for the usual fully comp / open driving / full claims protection / €150 excess.

Doom

I can only imagine the industry will push up prices across the board

oldyouth

Doom wrote: »

I can only imagine the industry will push up prices across the board

Why?

One thing is for sure that insurance premiums on both motor & home the way they have been the last 4-5 years are not sustainable. RSAs prices will go up and the rest of the industry will follow suit which follows the usual insurance cycle model.

coylemj

Deleted User wrote: »

One thing is for sure that insurance premiums on both motor & home the way they have been the last 4-5 years are not sustainable. RSAs prices will go up and the rest of the industry will follow suit which follows the usual insurance cycle model.

Davy Stockbrokers have commented today on the Zurich results, RSA seems to be the exception to the trend, they disagree with your observation.....

Improving non-life trend consistent with others, bar RSA

Results from Zurich Group contain little commentary on its non-life operations in Ireland other than in the context of the overall European division.

However, its comments imply an overall improving loss trend in its Irish business which is consistent with the improving trend recently reported by Aviva and Allianz, with RSA the exception.

See P.10 in this document, their daily market comment for Nov 14th..

http://www.davy.ie/davy/printPdf.htm?id=Davy_Morning_Equity_Briefing_14112013.htm

Youngblood.III

Ex-CEO in court

http: //m.rte.ie/news/2015/0309/685684-philip-smith-rsa/

bb12

just moved to rsa this year with both my car and house insurance after fbd more than doubled my car policy from last year despite never having a penalty point or claim in over 10 years driving...total sum spent with rsa was cheaper than fbd last year and got more coverage on my car...no complaints here.

BuffyBot

Don't resurrect ancient threads