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| Car insurance market dysfunctional, says Aviva | |
| (35 minutes later) | |
| The car insurance market is "dysfunctional" and does not reward loyal customers, said the chief executive of Aviva, Mark Wilson. | 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. | 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). | 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. | 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. | "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. | "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. | 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. | "Let's see how it goes," Mr Wilson said. |
| Car insurance is just 2% of Aviva's total business. | Car insurance is just 2% of Aviva's total business. |
| Pay | Pay |
| Shares in Aviva rose by about 0.5%, after the company reported operating profits up by 8% in the first half of 2017. | Shares in Aviva rose by about 0.5%, after the company reported operating profits up by 8% in the first half of 2017. |
| Sales of annuities, bulk annuities and equity release products all rose, with growth particularly strong in the UK. | Sales of annuities, bulk annuities and equity release products all rose, with growth particularly strong in the UK. |
| The dividend was up by 13%. | The dividend was up by 13%. |
| However, Mr Wilson refused to say whether he thought he was paid too much. | However, Mr Wilson refused to say whether he thought he was paid too much. |
| "I think I'll let the shareholders answer that one," he told the BBC. | "I think I'll let the shareholders answer that one," he told the BBC. |
| He said the company was happy to publish the ratio of its highest paid employee to its lowest, as soon as the government had determined how such a ratio should be expressed. | He said the company was happy to publish the ratio of its highest paid employee to its lowest, as soon as the government had determined how such a ratio should be expressed. |
| Aviva already pays its employees the National Living Wage and requires all its contractors to do likewise. | Aviva already pays its employees the National Living Wage and requires all its contractors to do likewise. |