Sterling Insurance Group has announced it will increase premium rates for its high net worth clients at renewal from 1 January 2010. The increases will be approximately 7.5% on ‘clean risks’, excluding any increases applicable to add-on covers, with a further 3% direct debit charge on selected products.
The increases are part of Sterling’s sustainable approach to pricing and follow the effects of the prolonged soft market combined with the downturn, which has created a pressing need for pricing corrections. The increasing access to online solutions for commoditised products and consumers’ desire to achieve lower premiums during the downturn has further compounded the issue of premium levels. Sterling believes other insurers must also act to correct artificially low prices soon to avoid customer dissatisfaction with claims in the future.
Sterling consults with its brokers on a continual basis and the decision to increase rates from January was done with brokers’ full support.
Director for personal and commercial insurances David Sweeney said: “We believe January 2010 is the right time for corrective action and hope that others will quickly follow to avert the collision course the market is currently on with dissatisfied, claiming customers.
“Sterling has adopted a robust and sustainable approach to pricing over the last 24 months – prices have been increasing gradually. These increases are necessary to ensure prices remain correct in order to provide a service and products that perform in line with or beyond policyholders’ expectations. Proper pricing is the only way insurers can deliver this and ensure customers are treated fairly in the event of a claim.”
