SMEs have enjoyed a cash boost with the lower costs of motoring insurance, research has revealed.
The figures compare the actual premiums paid from the British Insurance Brokers’ Association (BIBA) and Acturis Insurance Price Index, launched last year, which covers nearly £5Bn of premium per annum.
It shows that the SME basket of the index, which includes the cost of a commercial vehicle and a commercial package policy, has shown a reduction of around 2% in 2014 compared to 2013. This is largely driven by the reduction in commercial vehicle premiums, which saw reductions in Q4 2014 of 6.3% compared to Q4 in 2013.
We are delighted that the index shows real benefits to customers. The insurance industry is very competitive and has also committed to a number of initiatives to reduce insurance costs for families and businesses
Average premiums have remained fairly flat for larger businesses in 2014 compared to 2013.
Graeme Trudgill, BIBA’s executive director, said: “We are delighted that the index shows real benefits to customers. The insurance industry is very competitive and has also committed to a number of initiatives to reduce insurance costs for families and businesses. Customers should see these reductions in their premiums and if in any doubt about the cost or coverage of their insurance, should speak to an insurance broker.”
The index, although launched last year, can track premiums back to 2010, and in real terms shows positives news for customers when taking inflation into account.