Unfortunately, the management of most motor insurers treat it as a commodity transaction rather than a risk-based one. There is some justification in this on the basis of the number of units of exposure i.e. there are a lot of cars to spread the risk [compare this with aircraft hull insurance]. Unfortunately, somebody high up usually wants to get revenue up, so they either drop prices or don't increase them enough [given that claims costs like everything else are going up]. This normally gains business but, given that the premium arrives [notionally] on day 1 but it then has to cover the next 364 days, the resultant pool of money is often not enough to cover the claims over those 364 days and then they panic and put the premiums up. This is where we are in the main market with all premiums being hiked. Sometimes this is even to discourage business, but that too will change and we will go round again. It has always been thus because of short-sighted decisions. A steadier rating and thus pricing structure would serve us all better over time but there you are. The classic car market should be better IF people with knowledge are allowed to do their job properly but this isn't always so. Couple this with the fact that many such insurances are actually part of a scheme which is run by the broker who has delegated underwriting authority from the insurance company. Again, this can go well or not. Generally it is better until someone comes along in the company and wants to make a name for themselves and changes things for no good reason! Regarding the C8 and LV - we will never know whether LV lost money on this type of vehicle and hence Allianz canned it or someone at Allianz just didn't like the thought of it. Either way, it will probably change again. Although I never did motor insurance per se, 30 years in the industry taught me that the ways of insurance company senior management are often dark but never pleasant.
