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Car insurance market 'dysfunctional'


The car insurance market is “dysfunctional” and does not reward loyal customers, said the chief executive of Aviva, Mark Wilson.He said firms were tempting in new customers with prices that were “too low”, which put prices up for existing customers.Car insurance premiums have gone up by 11% in the last year, according to the Association of British Insurers (ABI).The typical bill for an annual policy is now £484, it said.”I think that the UK car insurance market is dysfunctional, I don’t think it works properly,” Mr Wilson told the BBC’s Today Programme.”The entry level is too low and then it gets put up for all existing customers,” he said.Aviva has developed a “suite” of products to be launched before the end of the year, which will help reward loyal customers.”Let’s see how it goes,” Mr Wilson said.Car insurance is just 2% of Aviva’s total business.
Source: BBC