Fear of Spiraling Claims For Unemployment Scares Insurers Into Demanding Record Premium Hikes
The much talked about green shoots of recovery have made precious little difference to the number of people looking for work in the UK.
In fact the jobless total has increased.
Financial commentators tell us that unemployment lags behind growth for some 12 to 18 months, so it seems at least 2.
5 million of us will still be looking for work until the spring of 2011.
By then we can only hope that new jobs will start to exceed those being lost.
Following the last recession in the early 1990's, the number of unemployed increased steeply in 1991 and remained consistently high until 1993.
It then gradually declined until 1997 when finally returning to pre-recession levels.
There is every reason to expect this pattern to be repeated once more.
This is certainly the financial analysis being factored into the planning of leading UK protection insurance providers.
Underwriters are still counting the frightening cost of unemployment claims they have paid so far this year.
These have leapt up.
This is not just because their results are affected by the sheer number of people claiming.
In fact it is the cost of individual claims that have rocketed as well, because once out of work, people take much longer to get another job.
No surprise given the huge number of applicants chasing every vacancy.
The Marketing Manager of a leading provider confided "We are paying five times more claims than we did this time last year and these numbers are set to continue for some time to come.
" Insurers are now looking to charge the premium they need to continue paying this level of claims.
There is further worry for consumers, due to the dire warnings about job prospects, some underwriters may decide to pull out of the market entirely.
Potentially this could mean those remaining pile on yet more increases.
For the average family, unless they are one of the small percentage with substantial savings they can call upon, this type of insurance is no longer a luxury.
Income or Lifestyle Protection insurance as it is often called, will pay them enough to meet their essential bills each month for up to a year.
It can be bought from Banks and Building Societies, or much cheaper from specialist providers, particularly on-line.
For anyone hesitating, it would be better to buy this cover now than face the prospect of paying much more, or even not being able to buy it at all.
To find out more search 'Lifestyle Protection Insurance' on-line or, try the leading consumer websites for money saving expertise and recommendations for buying Mortgage Payment Protection Insurance.
Not all price comparison websites support these policies, however the largest feature 'Payment Protection' or 'Mortgage Insurance' and are very useful for checking prices.
Finally, with such premium volatility, expect major increases from January 2010 when insurers calculate their losses for 2009 and seek to rebuild their profit margins.
If offered a fixed rate for a year, take it, this cover will not get any cheaper for at least the next two years or possibly more.
In fact the jobless total has increased.
Financial commentators tell us that unemployment lags behind growth for some 12 to 18 months, so it seems at least 2.
5 million of us will still be looking for work until the spring of 2011.
By then we can only hope that new jobs will start to exceed those being lost.
Following the last recession in the early 1990's, the number of unemployed increased steeply in 1991 and remained consistently high until 1993.
It then gradually declined until 1997 when finally returning to pre-recession levels.
There is every reason to expect this pattern to be repeated once more.
This is certainly the financial analysis being factored into the planning of leading UK protection insurance providers.
Underwriters are still counting the frightening cost of unemployment claims they have paid so far this year.
These have leapt up.
This is not just because their results are affected by the sheer number of people claiming.
In fact it is the cost of individual claims that have rocketed as well, because once out of work, people take much longer to get another job.
No surprise given the huge number of applicants chasing every vacancy.
The Marketing Manager of a leading provider confided "We are paying five times more claims than we did this time last year and these numbers are set to continue for some time to come.
" Insurers are now looking to charge the premium they need to continue paying this level of claims.
There is further worry for consumers, due to the dire warnings about job prospects, some underwriters may decide to pull out of the market entirely.
Potentially this could mean those remaining pile on yet more increases.
For the average family, unless they are one of the small percentage with substantial savings they can call upon, this type of insurance is no longer a luxury.
Income or Lifestyle Protection insurance as it is often called, will pay them enough to meet their essential bills each month for up to a year.
It can be bought from Banks and Building Societies, or much cheaper from specialist providers, particularly on-line.
For anyone hesitating, it would be better to buy this cover now than face the prospect of paying much more, or even not being able to buy it at all.
To find out more search 'Lifestyle Protection Insurance' on-line or, try the leading consumer websites for money saving expertise and recommendations for buying Mortgage Payment Protection Insurance.
Not all price comparison websites support these policies, however the largest feature 'Payment Protection' or 'Mortgage Insurance' and are very useful for checking prices.
Finally, with such premium volatility, expect major increases from January 2010 when insurers calculate their losses for 2009 and seek to rebuild their profit margins.
If offered a fixed rate for a year, take it, this cover will not get any cheaper for at least the next two years or possibly more.
Source...