Insurance costs to rise sharply

THE days of low cost insurance cover are rapidly coming to an end a leading player in the market has warned.

Philip Smith, chief executive, RSA, previously known as Royal & Sun Alliance said that the tougher trading environment combined with rising claims and solvency concerns in the financial sector generally.

As companies struggle, the tendency to cut costs in areas like health and safety can suffer neglect which in turns leads to higher claims.

The sector is also struggling as their crucial investment portfolios suffer sharp reversals due to the melt down in global stock markets. Overall the general insurance sector is facing into a more difficult period ahead which means people will pay more, he said.