FBD must now keep a lid on claims
THE first-half results from insurer FBD would seem to indicate that the widely anticipated increase in claims due to the recession has failed to materialise, for the time being at least.
For the six months to the end of June, FBD took in €177m of premiums, down €6m on the same period last year. However, claims paid out fell by almost a fifth from €124m to €103m.
In the results announcement the company warned that a depressed domestic economy would mean that premiums would fall again in the second half. The challenge facing FBD is ensuring that, with the value of premiums collected still falling, it continues to keep a lid on claims costs.
The proposals in the new Road Traffic Bill, which allow motor insurance companies access to drivers' penalty point records would, if enacted, be a major benefit to FBD.
If the recession continues it will almost certainly need every cent of the benefits of penalty points disclosure as cash-strapped clients begin to claim for the minor fender-benders, trips and falls which they would have met out of their own pockets in the good times.
Sunday Indo Business