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Car insurance market 'dysfunctional'

The car insurance market is “dysfunctional” and does not reward loyal customers, says the chief executive of Aviva, Mark Wilson.He said firms were tempting customers with prices that were “too low”, which put prices up for everyone else.Earlier this month, the Association of British Insurers said car insurance premiums had gone up by 11% in the past year.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 News

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