No relief for drivers as motor insurance prices continue to rise : Confused.com/EMB Price Index first quarter results

Results of first quarter 2010 Confused.com/EMB Car Insurance Price Index released • Car insurance prices rose by a further 4.3% in the first quarter of 20101 • As a result, annual increases have risen to 14.3% since April 2009 • Annual increases for 21-35 year olds exceeded the market average. 21-30 year old females have been hit the hardest. • The North West of England and Wales have seen the highest prices rises so far in 2010 • Approximately 25% of UK car insurance buyers use Confused.com Car insurance prices have continued to rise steeply in the first quarter of 2010, according to the Confused.com/EMB Car Insurance Price Index, rising by 4.3%. Although this is a drop from the 6.4% increase seen in the final quarter of 2009, it is still substantially more than the first quarter of 2009 (2.6%) and takes the annual increase seen since last March up to 14.3%. The average quoted premium has risen to £524 at the end of March 2010, an increase of £66 over the past year and £21 in just the last quarter. Simon Lamble, Product director at Confused.com commented: “These figures come from over 13 million real quotes on Confused.com, so they give a true barometer of the state of the market. We expect that the price rises taking place across all age groups will cause even more consumers to seek good value alternatives when their policies come up for renewal.” Lamble adds: “The absence of Quinn UK will also have a small but noticeable impact, increasing premiums still further, especially for young drivers.” 17-20 year olds generally saw the biggest increase in the quarter (6.6%). However over the course of the whole year, it was 26-30 year old women who were the hardest hit, with a 17.3% annual increase. EMB Partner, Peter Lee, said: “In pure monetary terms, younger females still pay less and younger females cost insurers less overall in claims than younger men. But the recent larger increases affecting women suggest that many insurers are narrowing this price differential between the sexes at younger ages.” Whilst the majority of the North West region experienced the biggest price rise in the quarter at 6.2%, Manchester/Merseyside enjoyed the third lowest rise in the country, of 3.1%. Wales also saw a substantial increase in prices with increases of over 5%. Northern Ireland was the only area to experience a price decrease in the quarter. Some postcode areas, notably Carlisle, that have experienced relatively mild premium increases in the past, saw sizeable increases in the first quarter of 2010. Other areas falling into that category included Bromley, Bath, Dorchester, Exeter, Lancaster and London-West. Peter Lee noted: “With motor insurers’ underwriting results due out from the FSA in the coming quarter, it will be interesting to see what impact price increases up to the end of 2009 have had on profitability. But with claims costs still on the rise, I suspect there is more pain to come for the consumer before prices level off.” -ENDS- For further information please contact: Press Office, Confused.com 02920 434 398 pressoffice@confused.com Graham Whitehead, EMB 01372 751060 / 07827 953969 Graham.whitehead@emb.com Notes to editors 1 The index comprises the cheapest quote received for comprehensive cover. About Confused.com: Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over two million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance. Confused.com has a panel of 90 motor insurance providers and could save customers over £154* on their annual car insurance policy. Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators. Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA. * 17% of customers who received a car insurance quote in 2009 and provided a best alternative price saved over £154.25 About EMB: EMB is an award-winning international actuarial and business consultancy and software provider. Best known as an advisor to non-life insurers, an area in which it works with 28 of the top 30 companies in the world, it also has developed its core analytical and predictive modelling capabilities to move into other business sectors and functions, such as banking and asset management, fraud prevention and marketing. EMB employs more than 300 people around the globe and staff numbers have more than doubled in the past five years.