Insurer Aviva reported a 20 per cent rise in revenue to £1.09 million for the first quarter of the year. This represents the fifth quarter in a row that sales have risen for the company following an upward surge in the company’s own customer numbers and an upward pressure on car insurance rates.
Aviva now has two million motorist customers after it added 580000 customers from the UK since the beginning of 2010. 180,000 of that figure can be directly attributed to the roll out of direct car insurance pricing to brokers. Other buoying factors include a successful advert campaign that features actor Paul Whitehouse.
Aviva stated its expectations are to see recent industry premium trends continue. The insurer stated that its own motor cover insurance rates increased by a factor of 24 per cent over the past 12 months. Homeowner insurance rates had also increased for Aviva, but at a much more modest 6 per cent, it was found.
With the industry becoming more and more competitive over the years, many car insurance companies chose to drop their rates in order to maintain market share. However, market experts claim that rates had dropped unsuitably low and are only now returning to more normal levels.
Another factor that has been said to have been taking its toll on cheap insurance premiums is a so-called ‘compensation culture that has been encouraged by ambulance-chasing doctors. This has also led to increasing incidences of motor fraud as well.