Car insurance

Car insurers 'should refund in Covid-19 crisis'

An Alliance MLA has called on all car insurers to refund premiums as the Covid-19 pandemic continues.

Andrew Muir, who represents North Down, said it was disappointing that not all car insurance providers had agreed to this.

“This is a tough financial time for so many and anything that can be done to alleviate that pressure should be pursued,” said Mr Muir.

Empty roads
PA Media

“It’s clear that with only essential travel permitted, the number of journeys has drastically reduced and risk consequentially declined, while those customers who find themselves shielding as instructed may only need to retain certain elements of their policy.

"Neither of these scenarios matches the current premiums being paid with some companies currently pocketing the savings”.

The Alliance Party has written to the Association of British Insurers calling for urgent clarification or guidance on how a uniform approach can be put in place going forward.

Saga takes £4m hit from Thomas Cook

The sun sets on a Saga cruise ship
Saga
The sun sets on a Saga cruise ship

Over-50s travel and insurance specialist Saga said despite it taking a £4m hit from the administration of Thomas Cook, profits will meet expectations .

But, it warned that insurance revenues will be 3% down on last year while it faces a future hit to its underwriting business from higher inflation on third party damage and theft costs.

Saga said it was operating against a “challenging” backdrop in its last half-year between August and January.

It predicted that full-year pre-tax profits will come in between £105m and £120m.

Although Saga continues to face challenging markets in insurance and travel, we have a clear focus on improving performance and cost efficiencies within the group, while strengthening our financial position and reducing debt,” said boss Euan Sutherland.

The news has cheered the market and seen Saga's shares rocket 6,52% to 44.46p this morning.