Island not immune from soaring insurance premiums, warns local company

The insurance industry is said to have been facing a perfect storm

The Island's largest insurance provider is warning the Isle of Man is not immune from soaring costs for home and car insurance, but premiums here are considerably lower than most parts of the UK.

Richard Hulme - Tower's development manager - says a number of factors are at play, which have led to huge rises in costs and inevitably affected premiums.

In respect of motoring policies big increases in repair costs, shortages of vehicle parts in the wake of Covid-19 and bureaucracy linked with Brexit have taken their toll.

A shortage of skilled  technicians across the motor trade on Island has also caused problems as vehicles become more complex. In a number of cases EV's and other types of vehicles need to be shipped to the UK for repair.

The cost of sending an unaccompanied vehicle can add around £1,000 to the bill. 

For home insurance policies the picture is equally bleak. The cost of settling claims has risen substantially in the face of big rises in material and labour costs post-pandemic.