Any use of the Index other than as above is not permitted without the prior written consent of the AA (contact details above).

Transcription

1 AA British Insurance Premium Index AA British Insurance Premium Index Quarter April 2013 The AA British Insurance Premium Index (Index) has been tracking the quarterly movement of car and home insurance since It measures the market average premium (an average of all quotes on a UK-representative basket of 'customers') as well as the five cheapest quotes for each 'customer' to provide the index. Motor insurance premiums 2 Home insurance premiums 7 Index home and motor quarterly moves 13 Index market average trends since Media contact Ian Crowder ian.crowder@theaa.com The information in the Index may only be used internally by the business (Internal Business Use) on the following terms. Internal Business Use means use of the information contained in the Index in reports and submissions that do not carry advertising in internal business activities. It specifically excludes any commercial use and exploitation including any use whereby the user obtains direct or indirect revenue, for example as part of any publishing activity, promotion, marketing or advertising. The AA copyright notice must be displayed on all such information. Press journalists may use the Index for editorial purposes without prior permission. Any use of the Index other than as above is not permitted without the prior written consent of the AA (contact details above). AA excludes all implied warranties and conditions to the fullest extent permitted by law. AA does not in any way warrant the accuracy or completeness of the Index and by using the Index the user acknowledges that it is relying upon its own skill in determining its suitability for any general or specific purpose and accepts that the Index may not be error free. Automobile Association Insurance Services Limited is an intermediary and is regulated by the Financial Services Authority. The Automobile Association Limited 2013 Page 1

2 AA British Insurance Premium Index Motor insurance premiums Quarter Car insurance premiums falling, latest AA Index finds Legal reforms bring cost savings Premiums expected to continue downward trend Insurers access to DVLA records will further cut fraud Car insurance premiums continue to fall according to the latest benchmark AA British Insurance Premium Index, covering the first quarter of The average quoted premium for an annual comprehensive car insurance policy, as tracked by the AA index, is That s a fall of 1.4% over the first three months of Over the past year premiums have fallen by 4.1%. The figures are reached by averaging the five cheapest quotes from a range of premiums from insurers and brokers, as well as from price comparison sites, against a fixed basket of risks. Simon Douglas, director of AA Insurance, says that the falling trend will be welcomed by consumers, who over the past three years have faced some of the biggest premium increases ever recorded by the Index. Car insurance has not been far from the headlines for all the wrong reasons, as insurers struggled to balance premiums against claims costs, he says. Sharp hikes in personal injury claims, fraud and uninsured drivers, to say nothing of last year s gender directive and changing regulations, have all helped to pile on the pounds. But there are other changes that I expect to help this downward premium trend, Mr Douglas says. The first parts of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) were introduced on 1 April, with others following later in the month and in July. Continued The Automobile Association Limited 2013 Page 2

3 AA British Insurance Premium Index Key reforms of LASPO include: Complete ban on the payment and receipt of referral fees for any claim that includes a personal injury Controls to ensure that costs are proportionate to the damages After the Event insurance premiums (often called additional liabilities ) and solicitor success fees can no longer be recovered from the defendant in an injury claim Fixed legal fees for road collision claims valued at under 10,000 will reduce from 1,200 to 500 In addition, a proposal is under consultation whereby the small claims court limit for personal injury claim cases where legal costs can t be recovered will increase from 1,000 to 5,000. These changes should go some way towards bringing no-win, no-fee type whiplash-injury claims under control, and will thus reduce the costs of claims, Mr Douglas says. Meanwhile, the government continues to focus on car insurance. The Transport Committee of cross-party MPs is currently exploring the very British phenomenon of soaring whiplash-injury claims. The Ministry of Justice has also just finished a consultation on whiplash injury. Mr Douglas hopes that these enquiries will bring further reforms to bring the number of whiplash-injury claims under control. He points out that 7 of those in crashes on Britain s roads make a claim for injury even if no injury has been suffered, amounting to some 570,000 claims per year, costing 2bn. This is a shameful record that makes the UK the whiplash capital of Europe. In France for instance, only 3% of crashes result in a personal injury claim, he says. The AA would like to see measures such as a part of legitimate injury payments being made direct to providers of rehabilitation services such as physiotherapy; an independent medical examination of whiplash-injury claimants; and the adoption of a system similar to that in Germany and Austria, where low-speed crashes are not eligible for whiplash injury claims. In a separate initiative, insurance companies are expected to be allowed to cross-check car insurance applications against the DVLA (Driver and Vehicle Licensing Agency) database from next year. Continued The Automobile Association Limited 2013 Page 3

4 AA British Insurance Premium Index Mr Douglas adds: We know that an astounding 23% of motorists wrongly declare their driving history to insurers, either not declaring convictions or disqualifications, or declaring something less significant when they take out car insurance. Many more provide other false information such as age, driving experience or even address in order to obtain a cheaper insurance premium. This is unfair to safer, honest motorists and adds to the cost of insurance. The AA s own research shows that the public overwhelmingly support such a move.* Insurers are now starting to cut premiums in anticipation that that these various measures will reduce costs. I expect the downward trend to continue, which will be welcome news for consumers, says Mr Douglas. *AA/Populus. 17,883 AA members were questioned between 14 and 20 December A net 92% of the respondents agreed that the cross-checking of insurance applications against the DVLA database is a good idea if it cuts down fraud. Continued The Automobile Association Limited 2013 Page 4

5 AA British Insurance Premium Index Motor insurance premiums Quarter Summary tables All channels: summary (note 1) Average premium Annual percentage change change Comprehensive 1, , % -3.9% TPFT 1, , % -1. All channels: summary (note 1) Average premium change Annual percentage change Comprehensive % -4.1% TPFT 1, , % Direct insurer: summary Average premium Apr-12 change change Comprehensive 1, , % 1, % TPFT 1, , % 1, % Direct insurer: summary Average premium Apr-12 change change Comprehensive % % TPFT 1, , % 1, % Price comparison sites: summary Average premium Apr-12 change change Comprehensive 1, , % 1, % TPFT 1, , , Price comparison sites: summary Average premium Apr-12 change change Comprehensive % % TPFT 1, , % 1, The Automobile Association Limited 2013 Page 5

6 AA British Insurance Premium Index The AA Index is based on a nationwide basket of risks that is representative of the UK insurance market. Quotes are obtained from a range of direct providers (brokers, insurers and schemes) and from companies quoted on price comparison sites. average is the average of all premiums returned for each risk. The average is from the five cheapest quotes returned for each risk. Note 1. Combined data that is an average of the quoted premiums returned from both the direct market and from price comparison sites. Download the Index (csv file) for motor insurance 2800 risks for car insurance Motor insurance charts direct market Quarterly movements for car insurance Motor insurance average premiums April 2013 (table) Motor insurance summary region and age April 2013 (table) Premium changes by age Premium changes by region Motor insurance comprehensive premium trends Motor insurance TPFT premium trends Motor insurance charts price comparison market Motor insurance average premiums April 2013 (table) Motor insurance summary region and age April 2013 (table) Premium changes by age Premium changes by region The Automobile Association Limited 2013 Page 6

7 AA British Insurance Premium Index Home insurance premiums Quarter Home insurance premiums fall despite flood concerns, AA Index finds Home insurance premiums continue downward trend Flood agreement between government and insurance industry out of sight thousands of homes could be left uninsurable Premiums for home buildings, contents and combined policies continued to fall dramatically over the first three months of 2013, despite an estimated cost to insurers of 1.2bn for last year s floods. Typical quotes on the AA s index (average of five cheapest premiums from both direct providers and price comparison sites) for buildings insurance are down 2.6% over the quarter (down 1.7% over the past 12 months); contents are down 1.7% (down 2.4% over the past 12 months); and for a combined buildings and contents policy, down 1.8% (down 1.4% over 12 months). Simon Douglas, director of AA Insurance, says that the downward trend hides wide regional variations, particularly where homes have suffered floods. Flood-affected homes will have seen big premium increases, especially if they have suffered two or three flood claims. They are also likely to have seen the excess the amount a homeowner must pay towards a claim for flood claims rise sharply. Such homes can still obtain insurance according to a statement of principles between insurers and the government. Yet that comes to an end in June this year and there is no sign of a replacement. The agreement was struck with the insurance industry in 2000, provided the government continued to increase investment in flood risk management. But in fact investment has fallen despite a recent welcome announcement that a further 294m will be spent to protect an additional 64,000 homes against flooding. Flooding has become a major concern for both the government and the insurance industry, which have been locked in negotiations to find a way forward. There are estimated to be over 200,000 homes at serious risk of flooding, and 1.2 million at some risk. Continued The Automobile Association Limited 2013 Page 7

8 AA British Insurance Premium Index The decision was taken to end the statement of principles back in 2008, so it s not as if there hasn t been time to come up with a new deal, says Mr Douglas. Homeowners will be exasperated and worried at this impasse. People need flood cover that is affordable, and that won t happen unless and until a more robust system, which all home owners are likely to have to contribute to, is in place. At present, we are on the brink of an open market which could see insurance becoming out of reach for flood-affected families, with obvious consequences for property values and mortgages," he says. The Association of British Insurers [ABI] has been discussing a proposal known as Flood Re, which proposes that the total cost of increase flood claims is spread through a levy on insurers to provide a not-for-profit pool to meet claims from high-risk homes. This would add an estimated 8 to 15 to all home insurance premiums. Since it would take time for this reserve to be built up, in the early years it would need to be underwritten by the government in the event that there is a major flood catastrophe soon after it was put in place. This, the AA understands, HM Treasury is unwilling to do. A further proposal by reinsurance broker Marsh offers a different option. Known as Flood Mu, it would mutualise (hence the name) rather than reinsure flood losses, with some of the claims costs arising from a flood disaster distributed over all home insurers, although some of the risk remains with the originator of the insurance cover. It would not require government funding, but is more complex in operation. Nonetheless, both concepts would need primary legislation. This could take a year or more, since it would rely on all insurers being compelled to participate. For now, I see no option but to extend the statement of principles for the time being, but it s not a satisfactory way forward. It was only ever seen as a temporary measure, Mr Douglas points out. He adds that other European countries have effective government mechanisms in place to ensure flood-risk homes can be insured, not dissimilar to the ABI s proposal. It s difficult to see why the UK can t do something along those lines. The AA Index suggests that competition is still keeping home premiums in check, although some insurers are showing signs of putting up premiums. Continued The Automobile Association Limited 2013 Page 8

9 AA British Insurance Premium Index At a time when Sir John Beddington, the government s own outgoing chief scientist, has warned that a need for urgency in tackling the irrefutable effects of climate change, insurers are becoming more nervous about the implications for more frequent and costly claims. Sir John warned that we are going to see more floods, more sea surges and more storms in our lifetimes. Insurers will confirm that greater frequency of severe weather is already affecting more and more homes that have no history of floods. I hope there isn t more serious flooding this year, adds Mr Douglas. That would almost certainly be a catalyst for further premium rises for everyone, as happened over the months following the 2007 floods. And I wouldn t expect them to stabilise until a firm solution is in place to tackle what is at great risk of becoming a national embarrassment." Continued The Automobile Association Limited 2013 Page 9

10 AA British Insurance Premium Index Home insurance premiums Quarter Summary tables All channels: summary (note 1) Average premium change Annual percentage change Buildings % -1.8% Contents % -1.9% Combined % -3.3% All channels: summary (note 1) Average premium change Annual percentage change Buildings % -1.7% Contents % -2.4% Combined % -1.4% Direct insurer: summary Average premium Apr-12 change change Buildings Contents % Combined % Direct insurer: summary Average premium Apr-12 change change Buildings % % Contents % Combined Price comparison sites: summary Average premium Apr-12 change change Buildings % % Contents % Combined % % Price comparison sites: summary Average premium Apr-12 change change Buildings % % Contents % % Combined % % The Automobile Association Limited 2013 Page 10

11 AA British Insurance Premium Index The AA Index is based on a nationwide basket of risks that is representative of the UK insurance market. Quotes are obtained from a range of direct providers (brokers, insurers and schemes) and from companies quoted on price comparison sites. average is the average of all premiums returned for each risk. The average is from the five cheapest quotes returned for each risk. Note 1. Combined data that is an average of the quoted premiums returned from both the direct market and from price comparison sites Download the Index (csv file) for home insurance: 750 risks for home insurance Home insurance charts direct market Quarterly movements for home insurance Home insurance average premiums April 2013 (table) Home insurance buildings average premiums April 2013 (table) Home insurance contents average premiums April 2013 (table) Home insurance combined average premiums April 2013 (table) Premium changes by region Premium changes by age Premium changes by property type Premium changes by year built Home insurance buildings premium trends Home insurance contents premium trends Continued The Automobile Association Limited 2013 Page 11

12 AA British Insurance Premium Index Home insurance charts price comparison market Home insurance average premiums April 2013 (table) Home insurance buildings average premiums April 2013 (table) Home insurance contents average premiums April 2013 (table) Home insurance combined average premiums April 2013 (table) Premium changes by region Premium changes by age Premium changes by property type Premium changes by year built The Automobile Association Limited 2013 Page 12

13 AA British Insurance Premium Index quarterly moves - April 2013 Buildings Contents Combined Comp TPFT July 1994 market average premium January 2013 market average premium , , April 2013 market average premium , , January 2013 shoparound average premium , April 2013 shouparound average premium , AA British Insurance Premium Index quarterly moves - April , , , , , , Buildings Contents Combined Comp TPFT July 1994 market average premium January 2013 market average premium April 2013 market average premium January 2013 shoparound average premium April 2013 shouparound average premium A base rate of 100 was set at July The British Insurance Premium Index gives a quarterly update on the movements of home insurance on 750 risks each for buildings and contents, and on 2800 car insurance risks comprehensive and 300 TPFT. July 1994 and subsequent premiums are assumed average premiums rebased in line with BIPI production methods over time. The Index shows average car insurance premiums based on open market rates from 80 of the UK's leading insurers and home premiums across 72 insurers. Composites, direct writers and online providers are included. The quarterly move compares the market average premium this quarter with the previous quarter. The shoparound premium is the average of the five lowest premiums quoted by the insurers in the market survey. This more closely reflects the price paid, but does not take account of discretionary discounts offered. All premiums shown include Insurance Premium Tax at the prevailing rate. Premiums shown for July 1994 alone are free of IPT While it is not possible to include risks from every town in the UK, those selected are typical risks, reflecting a cross section of the insurance market. Movements by specific towns are checked separately using a basket of risks.

14 AA British Insurance Premium Index market average trends since Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Motor Comp Home Buildings Motor TPFT Home Contents

15 Motor direct market summaries AA British Insurance Premium Index

16 AA British Insurance Premium Index quarterly moves - April 2013 Comp TPFT July 1994 market average premium January 2013 market average premium 1, , April 2013 market average premium 1, , January 2013 shoparound average premium , April 2013 shoparound average premium , AA British Insurance Premium Index quarterly moves - April , , , , , , Comp July 1994 market average premium January 2013 market average premium April 2013 market average premium January 2013 shoparound average premium April 2013 shoparound average premium TPFT A base rate of 100 was set at July The British Insurance Premium Index gives a quarterly update on the movements of 2800 car insurance risks comprehensive and 300 TPFT. July 1994 and subsequent premiums are assumed average premiums rebased in line with BIPI production methods over time. The Index shows average car insurance premiums based on open market rates from 80 of the UK's leading insurers. Composites, direct writers and online providers are included. The quarterly move compares the market average premium this quarter with the previous quarter. The shoparound premium is the average of the five lowest premiums quoted by the insurers in the market survey. This more closely reflects the price paid, but does not take account of discretionary discounts offered. All premiums shown include Insurance Premium Tax at the prevailing rate. Premiums shown for July 1994 alone are free of IPT While it is not possible to include risks from every town in the UK, those selected are typical risks, reflecting a cross section of the insurance market. Movements by specific towns are checked separately using a basket of risks.

17 Motor Average Premiums April 2013 Summary Average Premium Apr-12 Comprehensive 1, , % 1, % Third Party Fire & Theft 1, , % 1, % Summary Average Premium Apr-12 Comprehensive % % Third Party Fire & Theft 1, , % 1, %

18 Motor Regional Summary - direct Region London 455 1, , % % South % Anglia , % Central 337 1, , % % West & West Country % % Wales % Granada 252 1, , % 1, , % Yorkshire 227 1, , % % Border & TyneTees 130 1, , % % Scotland % % UTV 79 1, , % 1, , % Motor Age Summary - direct Age , , % 1, , % , , % 1, , % % % % % % % % % % Total 2,646

19 AA BIPI motor quarterly average shoparound premium movement by Age April

20 AA BIPI motor quarterly average shoparound premium movement by Super Regions April London South Anglia Central West & West Country Wales Granada Yorkshire Border & TyneTees Scotland UTV

21 1,200 1,150 1,100 1,050 1, AA BIPI Motor Comprehensive shoparound premium trends 45% 4 35% 3 Premium % 2 15% 1 5% Annual 400-5% Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Annual 9.3% % 22.6% 22.5% 30.9% 39.3% 33.2% 40.1% 30.1% 16.4% 15.3% 7.7% 8.5% 5.6% -2.8% -1.2% Comp Premium

22 AA BIPI Motor Third Party shoparound premium trends Premium 1,800 1,750 1,700 1,650 1,600 1,550 1,500 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1, % 78% 68% 58% 48% 38% 28% 18% 8% Annual Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Annual 13.9% 12.8% 20.7% 33.4% 35.6% 49.4% 54.6% 71.9% 82.1% 49.6% 33.1% 7.6% % 3.9% 2.7% 5.5% 3rd Party Prem , , , , , , , , , ,182.03

23 Motor price comparison market summaries AA British Insurance Premium Index

24 Motor Aggregator Average Premiums April 2013 Summary Average Premium Apr-12 Comprehensive 1, , % 1, % Third Party Fire & Theft 1, , , Summary Average Premium Apr-12 Comprehensive % % Third Party Fire & Theft 1, , % 1, Insurers Used 94

25 Motor Regional Summary - aggregator Region Anglia 221 1, , % % Border & TyneTees 131 1, , % Central 331 1, , % % Granada 265 2, , % 1, , % London 445 1, , % Scotland % % South % Wales % % West & West Country % % Yorkshire 227 1, , % % Motor Age Summary - aggregator Age , , % 1, , % , , % % % % % % % % % % % Total 2,713

26 AA BIPI quarterly average premium movement by Age - Aggregator April % -5% -6% -7% -8%

27 AA BIPI quarterly average premium movement by ITV Super Regions - Aggregator April % Anglia Border & TyneTees Central Granada London Scotland South Wales West & West Country Yorkshire -4% -5% -6% -7% -8%

28 Home direct market summaries AA British Insurance Premium Index

29 AA British Insurance Premium Index quarterly moves - April 2013 Buildings Contents Combined July 1994 market average premium January 2013 market average premium April 2013 market average premium January 2013 shoparound average premium April 2013 shoparound average premium AA British Insurance Premium Index quarterly moves - April Buildings Contents Combined July 1994 market average premium January 2013 market average premium April 2013 market average premium January 2013 shoparound average premium April 2013 shoparound average premium A base rate of 100 was set at July The British Insurance Premium Index gives a quarterly update on the movements of home insurance on 750 risks each for buildings and contents. July 1994 and subsequent premiums are assumed average premiums rebased in line with BIPI production methods over time. The Index shows average home insurance premiums based on open market rates from 72 of the UK's leading insurers. Composites, direct writers and online providers are included. The quarterly move compares the market average premium this quarter with the same quarter last year. The shoparound premium is the average of the five lowest premiums quoted by the insurers in the market survey. This more closely reflects the price paid, but does not take account of discretionary discounts offered. All premiums shown include Insurance Premium Tax at the prevailing rate. Premiums shown for July 1994 alone are free of IPT While it is not possible to include risks from every town in the UK, those selected are typical risks, reflecting a cross section of the insurance market. Movements by specific towns are checked separately using a basket of risks.

30 Home Average Premiums April 2013 Summary Average Premium Apr-12 Buildings Contents % Combined % Summary Average Premium Apr-12 Buildings % % Contents % Combined

31 Regional Summary Buildings Region Border & TyneTees % % Central & Granada % London & South % % Scotland % % Wales % % West & West Country % % Yorkshire & Anglia % % Age Summary Buildings Age % % % % % % % % % % % % % Property Summary Buildings Property Type Detached House % % Mid Terrace House % % Semi Detached House % % End Terrace House % Semi Detached Bungalow % % Detached Bungalow % % Flat % % Year Built Summary Buildings Year Built < % % % % % % % % %

32 Regional Summary Contents Region Border & TyneTees Central & Granada % % London & South % Scotland % % Wales % % West & West Country % % Yorkshire & Anglia % % Age Summary Contents Age % % % % % % % % % % % % % % Property Summary Contents Property Type Detached House % % Mid Terrace House % % Semi Detached House % % End Terrace House % Semi Detached Bungalow % % Detached Bungalow % % Flat % % Year Built Summary Contents Year Built < % % % % % % % % %

33 Regional Summary Combined Region Border & TyneTees % Central & Granada % % London & South % % Scotland % Wales % % West & West Country % % Yorkshire & Anglia % % Age Summary Combined Age % % % % % % % % % % % % % Property Summary Combined Property Type Detached House % % Mid Terrace House % % Semi Detached House % % End Terrace House % Semi Detached Bungalow % % Detached Bungalow % % Flat % % Year Built Summary Combined Year Built < % % % % % % % % % %

34 AA BIPI home quarterly average Buildings premium movements by Super Regions - April 2013 AA BIPI home quarterly average Contents premium movements by Super Regions - April 2013 Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia -4% -4% -5% -6% AA BIPI home quarterly average Combined premium movements by Super Regions - April 2013 Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia

35 AA BIPI home quarterly average Buildings premium movements by Age - April 2013 AA BIPI home quarterly average Contents premium movements by Age - April % -4% -5% -4% -5% -6% -5% AA BIPI home quarterly average Combined premium movements by Age - April

36 AA BIPI home quarterly average Buildings premium movements by Property Type - April 2013 AA BIPI home quarterly average Contents premium movements by Property Type - April % -4% -5% -6% Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat -4% -5% Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat -7% -6% AA BIPI home quarterly average Combined premium movements by Property Type - April % 3% 2% 1% Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat -4%

37 AA BIPI home quarterly average Buildings premium movements by Year Built - April 2013 AA BIPI home quarterly average Contents premium movements by Year Built - April % < < % -4% -5% AA BIPI home quarterly average Combined premium movements by Year Built - April 2013 <

38 180 AA BIPI Home Buildings shoparound premium trends % 150 Premium % Annual % Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Annual 5.8% 5.3% 5.4% 11.5% 6.7% 3.5% 7.5% 10.2% 13.6% 11.8% 14.3% 9.5% 7.1% 6.9% 5.2% 2.2% -0.8% Buildings Premium

39 112 AA BIPI Home Contents shoparound premium trends % Premium % Annual % Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Annual -0.1% -7.9% -4.7% 4.4% 1.6% 9.5% 14.9% 8.3% 11.9% 8.2% 5.8% 11.2% 3.7% 4.8% 3.3% -0.5% -2. Contents Premium

40 Home price comparison market summaries AA British Insurance Premium Index

41 Home Aggregator Average Premiums April 2013 Summary Average Premium Apr-12 Buildings % % Contents % Combined % % Summary Average Premium Apr-12 Buildings % % Contents % % Combined % % Buildings insurers used Contents insurers used Combined insurers used

42 Aggregator Regional Summary Buildings Region Border & TyneTees % % Central & Granada % London & South % % Scotland % % Wales % West & West Country % % Yorkshire & Anglia % % Aggregator Age Summary Buildings Age % % % % % % % % % % Aggregator Property Summary Buildings Property Type Detached House % % Mid Terrace House % Semi Detached House % % End Terrace House % % Semi Detached Bungalow % Detached Bungalow % % Flat % % Aggregator Year Built Summary Buildings Year Built < % % % % % % % % %

43 Aggregator Regional Summary Contents Region Border & TyneTees % Central & Granada % % London & South % % Scotland % % Wales % % West & West Country % % Yorkshire & Anglia % % Aggregator Age Summary Contents Age % % % % % % % % % % % Aggregator Property Summary Contents Property Type Detached House % % Mid Terrace House % % Semi Detached House % % End Terrace House % % Semi Detached Bungalow % % Detached Bungalow Flat % Aggregator Year Built Summary Contents Year Built < % % % % % % %

44 Aggregator Regional Summary Combined Region Border & TyneTees % % Central & Granada % % London & South % % Scotland % Wales % % West & West Country % % Yorkshire & Anglia % % Aggregator Age Summary Combined Age % % % % % % % % % % % % % Aggregator Property Summary Combined Property Type Detached House % % Mid Terrace House % % Semi Detached House % % End Terrace House % % Semi Detached Bungalow % % Detached Bungalow % Flat % % Aggregator Year Built Summary Combined Year Built < % % % % % % % %

45 AA BIPI home quarterly average Buildings premium movements by Super Regions - Aggregator April 2013 AA BIPI home quarterly average Contents premium movements by Super Regions - Aggregator April 2013 Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia 4% 3% 3% 2% 2% -4% 1% 1% Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia AA BIPI home quarterly average Combined premium movements by Super Regions - Aggregator April 2013 Border & TyneTees Central & Granada London & South Scotland Wales West & West Country Yorkshire & Anglia -4% -4% -5%

46 AA BIPI home quarterly average Buildings premium movements by Age - Aggregator April 2013 AA BIPI home quarterly average Contents premium movements by Age - Aggregator April % % 3% 2% 2% 1% -4% 1% -5% % AA BIPI home quarterly average Combined premium movements by Age - Aggregator April % -4% -5%

47 AA BIPI home quarterly average Buildings premium movements by Property Type - Aggregator April 2013 AA BIPI home quarterly average Contents premium movements by Property Type - Aggregator April % -4% -4% Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat 3% 2% 2% 1% 1% Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat AA BIPI home quarterly average Combined premium movements by Property Type - Aggregator April 2013 Detached House Mid Terrace House Semi Detached House End Terrace House Semi Detached Bungalow Detached Bungalow Flat -4% -4% -5% -5%

48 AA BIPI home quarterly average Buildings premium movements by Year Built - Aggregator April 2013 AA BIPI home quarterly average Contents premium movements by Year Built - Aggregator April % < % 2% 1% 1% < AA BIPI home quarterly average Combined premium movements by Year Built - Aggregator April 2013 < % -4%