pop-champagneGreat news! The Times reports that for the first time in 20 years, insurers have made a profit from the premiums they sell their customers. They pay out £98.50 for every £100.00 received in premiums, a fall from £102.50 in the previous year.

This has been achieved thanks to a clampdown on insurance fraud (welcome) and by ending the ability of litigants to recover after-the-event insurance premiums and success fees from insurers when they win claims at trial (very unwelcome, as it has restricted access to justice considerably).

Will we now see insurance premiums reduced for drivers, homeowners and the like, as we were promised? Or will pigs be seen flying overhead as Hell freezes over?