MAPFRE Middlesea not reviewing motor insurance premiums
Premiums were increased in March
MAPFRE Middlesea has clarified that it has not raised motor insurance premiums again following the last revision in March 2017.
Is has also been clarified that a letter being sent to MAPFRE Middlesea (MMS) clients through First United insurance brokers is a standard letter that first started being circulated to clients after the March revision. As such, any notion that there will be further increases in the price of premiums is incorrect.
Clients were being made aware of the March revision through the renewal notices, which are sent out monthly.
Earlier this week this newspaper published a report saying that major insurance companies were expected to increase their motor premiums after a spike in claims. The report was based on the letter sent to motorists insured with MAPFRE Middlesea through First United Insurance Brokers.
That letter did not make it clear that the premiums had been reviewed in March and, as such, made it look as though the increases were happening now. The letter also said that “one would expect the other insurers to follow suit in a short time span.”
A spokesperson for MAPFRE Middlesea confirmed that the last policy price revision was carried out in March and no other changes to the prices have been affected since.
Referring to the letter by First United, a spokesperson for the insurance company said: “The said communication was issued by an insurance broker and not by our office. We were not aware of their communication with their customers who are also our policyholders.
Notwithstanding this, we confirm that there is no issue or misunderstanding between MAPFRE Middlesea and First United Insurance Brokers. First United hold a large book of motor business with our office. They were acting as independent insurance brokers advising their customers that we carried out pricing corrections which could affect their renewal premiums. In the rest of their communication, the said insurance broker made observations on its knowledge and understanding of the insurance market by indicating the possible implications of market forces considering the “adverse loss situation currently prevailing.”
At the same time, this insurance broker stated reasons, notwithstanding the price adjustments, as to why clients should maintain their custom with MAPFRE Middlesea but also provided them with the option to seek alternative terms from other insurers.”
In the meantime, Gasan Mamo Insurance, which had been sent questions by this newspaper, said it was not aware what adjustments in rates if any will be implemented by the company or any other insurer, and that premium rate adjustments were something that companies look at independently and based on their own experience, although market conditions and overall trends in claims are also taken into consideration.