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Islington: most expensive insurance in the UK

seventh worst place to live according to TV’s Location, Location, Location’s tops insurance premium list

March 31, 2008

Islington is the most expensive place to be insured in the UK, according to research carried out by EMB, the actuarial consultancy. The London borough, which came seventh from bottom in Channel 4’s list of the UK’s ten “worst places to live” in 2007, is the most expensive borough in which to buy insurance for cars and homes – with an average insurance premium of £745.

EMB’s research looked at the average annual combination of motor, buildings and contents insurance for the ten worst places to live in the UK. The high levels of violence and drug related crime in the borough has a significant effect on insurance premiums, with motor vehicle theft in Islington two and half times and burglary three times the
national average.

“Insurance premiums are typically higher in cities than rural areas because of the combination of high crime and unemployment rates. About half of a contents’ premium will be based on the likelihood of theft. Quite simply, Islington has a high density of young, unemployed males and it is this section of the population that is most likely to commit crimes against property and motors. Islington is also an area which is prone to subsidence, another big factor in the pricing of household insurance policies prices,” Karl Murphy, partner at EMB, explains.

Meanwhile at the top end of the market, South Cambridgeshire is the most inexpensive of the top ten ‘best’ places to live in the UK, with an average annual premium of only £373 a year – half the cost of Islington. Winchester and Edinburgh (Location, Location, Location’s top two cities) were second and third.

Murphy commented: “While the more salubrious locations in the south tend to offer lower premiums, we are seeing a gradual rise in prices due to the increasing risk of flooding and subsidence. Those towns close to the coast or a river are experiencing rocketing insurance costs. Premiums for these locations will look very different in five years’ time.”

EMB calculated the premiums for the annual total of motor, building and contents insurance based on statistics for a 40-year-old male, with an average car and house.

Executive quote

“Insurance premiums are typically higher in cities than rural areas because of the combination of high crime and unemployment rates. About half of a contents’ premium will be based on the likelihood of theft. Quite simply, Islington has a high density of young, unemployed males and it is this section of the population that is most likely to commit crimes against property and motors. Islington is also an area which is prone to subsidence, another big factor in the pricing of household insurance policies prices,” Karl Murphy, partner at EMB, explains.

Murphy commented: “While the more salubrious locations in the south tend to offer lower premiums, we are seeing a gradual rise in prices due to the increasing risk of flooding and subsidence. Those towns close to the coast or a river are experiencing rocketing insurance costs. Premiums for these locations will look very different in five years’ time.”

About the company

Established in 1993, EMB (www.emb.co.uk) is a rapidly growing international firm, which combines actuarial consultants with highly analytical and risk assessment software. EMB’s range of software is unrivalled, making it feasible to perform tasks that would otherwise be impossible, impractical or hugely time-consuming. Headquartered in the UK, it employs more than 250 people around the globe covering Americas, Asia-Pacific and Europe, Middle East & Africa. It is the market-leading consultancy in non-life insurance, covering personal lines, commercial insurance and the London Market. Clients include 28 of the top 30 non-life companies in the world.

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Islington: most expensive insurance in the UK

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