AA Insurance Publishes New Industry Research

One of the latest research in the insurance industry, carried out by AA Insurance, showed that an average price of a residential buildings insurance increased by 10% in the course of the past year. It should be highlighted that the rise in buildings insurance cost did not come as a surprise, as it has been steadily increasing for six quarters already. The AA Insurance research showed that currently an average residential buildings insurance is priced at £223.92. However, AA Insurance specialists acknowledge that best-buy insurance deals are still available on the market. They also are determined that a 10% rise in the cost of buildings insurance came as a response of the industry to the increased number of insurance claims, which rose by approximately 15% by number as well as by value. Industry specialists link this increase with weather events, such as flash floods, and with the credit crunch. For instance Simon Douglas, director for AA Insurance says that insurance providers are becoming more and more concerned with the rise in cost and frequency of insurance claims associated with climate change; he adds that claims for flooding, storm and subsidence damage have risen even in those areas where such weather events were previously unknown. The other result of the AA Insurance research showed that contents home insurance has been steadily declining in price over the past year, which fact could be explained by insurance companies paying greater attention to local crime level rather than national one. At the moment, the Brits can enjoy a 3.2% decrease in the cost of the contents insurance, which is now priced at £122.34 on average; however, AA Insurance experts mark that people living in high-risk areas might see a higher price on insurance premiums. It is interesting to note that the AA Insurance research also suggest that the number of detected fraudulent claims has increased by a third this year, which fact definitely reflects the enhanced ability of insurers to identify fraud.