AFTER trimming the cost of motor insurance premiums by an aggregate 9 per cent over the past two years, Guardian PMPA, the country's largest motor in surer, dropped some broad hints this week that rising motor claims against the company may require a "price adjustment". The polite term means that, given the nature of the industry, the majority of safe, sensible drivers may again be asked to subsidise the wicked and careless minority.
First half results show a deteriorating financial situation at Guardian PMPA, which has around 40 per cent of the market. The group stresses there are no plans yet to raise motor charges but should the "worrying increase" in claims continue corrective action cannot be ruled out.
In the first six months, underwriting profits slipped back to break even, compared to profits of £7 million in the comparative period last year.
Total insurance profits were sliced by over 50 per cent to £12.6 million, with the company unlikely to match last year's profits on insurance of £75 million and £105 million in pre-tax profits.
Guardian's chief executive Gerard Healy suggests that its largesse in cutting motor premiums has rebounded on profitability. Garda statistics show an 11 per cent increase in road accidents so far this year. The wise old owl at Guardian recommends prompt action to ameliorate this dangerous and costly trend.
