Motor price war looms

Top insurers are facing tough competition by new companies, forcing some to drop their prices on the low risk premiums to stay in the market. This change has been agreed by financial supporters and the drop is being implemented. Industry analysts have expressed concern that this move could push the market further. An insider for one of the uk's top insurers said "We all are looking very hard at the competitions rates and their target market. "It is early days but the button has been pushed for this plan to be put into action." One particular new company have claimed to be the fastest growing insurer ever and are enjoyinmg their rapid expansion although are estimated to be one tenth the size of the leading insurer. It appears that new found companies are tarketing low risk, careful driver sector of the market through advanced risk profiling. Some have passed 750,000 policies in the past three years. CEO of this company said "I guess we should feel complimented that they think we are that big. While it is interesting , we are not concerned. "We feel that our brand and level of sophistication give us clear advantage over the competition. "I do not think the insurers on the top spot will be able to copy what we do, however we know that they check us out in terms of price, given what we hear i would have thought that they have their own issues internally to sort out. " We believe they have lost a lot of good people and their morale is not all it could be."

Date - 13/05/2004