Thursday 4 April 2024

YET MORE CRAP

I have been silent for a couple of weeks owing to the rather depressing nature of things around the world. Whilst some areas of the globe are actively engaged in violence and horrific death, elsewhere there appears to be stagnation. Western leaders make forceful statements indicating their displeasure at what is going on, but seem powerless to have any influence whatsoever.  Why does Mr Netanyahu not listen to Mr Biden et al. in the United States? Why is Mr Sunak hesitating on not supplying further weapons to the State of Israel?

 

According to UK defence export statistics for 2022 published on 17th November 2023, by the Department of UK Defence and Security Exports, the United Kingdom had sold, on average, £4.5 Billion a year of defence exports to the Middle East alone, since 2017. That’s £22.5 bn in the last 5 years.  The same department claims that the United States has defence exports to the rest of the world of over $200 bn in the last five years. Clearly wars make money, and given a country’s requirements for funding its own welfare, business and security, that amount of income is hard to turn away from. Just how much of that trade stays in private hands or into the state coffers is another matter.

 

There is a hint of hypocrisy in summoning Israeli ambassadors to account for the IDF’s current admitted horrific mistake in killing British and international aid workers. What can possibly rectify such an error? What sort of compensation can be made and who will provide it? What is the point of the useless huffing and puffing of Foreign Secretaries, Secretaries of State, Presidents and Prime Ministers? We are no nearer a solution.

 

People have demonstrated throughout the world as well as in Israel itself to stop the war, indeed to stop all wars; yet, we have political stagnation. Our elected representatives seem unable to act and carry out the will of the people. What is the problem? What planet are we living on?

 

From what I see on YouTube and other media, those American citizens about to vote in November, appear more concerned with stopping immigration at the Mexican Border and giving support to a justly indicted blowhard attempting to bully his way into the presidency. How does he have the gall to say “There’s gonna be a bloodbath if I don’t get elected”? What has happened to America? Why is he still not on trial? How can the Judiciary allow such delay? For God’s sake America, get a grip!

 

As to the United Kingdom, the current Prime Minister is on a treadmill to Rwanda, in the belief that by some miracle his party’s inadequacy will disappear. He no longer sees the harm and damage he is causing the country with his stagnating terminal government. It is at the end of its tether. Why must we be dragged down with it?  He scoffs when asked ‘when will there be an election?’. Surely he must realise it’s what the people of this country desperately want. Why is he being so obtuse?

 

The country’s economy is all over the place. The saddest part is the poverty it is causing and the mendacity of businesses and companies taking advantage of the situation to increase their profits at the expense of the average citizen. Banker’s bonuses are no longer open to scrutiny; water companies having caused major damage and pollution, whilst pocketing huge dividends, now seek to increase prices to supposedly invest in cleaning up their mess; insurance companies are now charging exorbitant fees claiming increased risk owing to inflation.

 

In particular vehicle insurance is going through the roof, so to speak. In order to have a vehicle on the road, of any kind, there is a legal requirement that the driver be insured. This gives insurance companies virtually carte blanche to charge what they like. Owing to the increased expenditure now involved in settling the smallest claim, the cost of comprehensive insurance has skyrocketed to extortionate levels. It is as if the insurance companies are making drivers provide them with the full amount of any claim they might make down the line so that all the company has to do is settle the claim by giving the customer their own money back. They have become a sort of saving banks for road users. Save up for your own compensation and if you don’t make a claim, well thank you very much. The state is allowing insurance companies to charge you for taking your money and reluctantly giving some of it back and still pocketing the excess. That’s legally sponsored extortion. Make a claim and your premiums go up and up. 

 

How is that justified?  That not only applies to vehicles, but to all sorts of insurance. Is it any wonder that there are hundreds of insurance companies and agents. Money for old rope comes to mind, and the law allows it.

 

Our house insurance has almost trebled and a friend’s car insurance has risen to an astronomical £6000 for a year from £1000 odd for the previous year, and he has made no claim during his time with the insurance company.  

 

The following is from the Association of British Insurers website:

None of my circumstances have changed, my car is one year older, and I’ve still not claimed. So why has my motor cover price gone up?

We can understand why it might be frustrating or distressing to see prices rising when key factors such as your no-claims haven’t changed.

But recent premium rises in motor insurance have been driven by a sharp rise in the cost of claims, often at rates higher than inflation.

For example, the cost of vehicle repairs jumped 32%, with the cost of paint increasing 16%, spare parts up 11% and the cost of replacement cars increasing by 47%. These have been largely driven by the price of energy. These factors impact heavily what it costs to pay a claim for a theft or an accident. Paying claims for those customers that suffer a loss is the key part of an insurance policy.

Your quoted renewal price may also be impacted by reform in the way insurers price new and existing customers. See the below question for more details here.

Finally, as your price partly reflects the risks you face of having to claim in the future, it may be that your local area has seen more traffic accidents or thefts recently, which could mean your renewal quote is higher. Or it might be the case that your insurer’s data suggests the make or model of your vehicle has become riskier. Such factors are less likely to change quickly though, so should only account for a part of any changes, compared to bigger factors like inflation. There are also factors unrelated to risk to consider too, covered in our final FAQ below.

 

What they are saying in effect is that the customer pays the increases and the company’s profits are unaffected and consequently go up as a percentage of the increase. Insurance companies never lose money. They pay out on a claim and get it all back from the next set of premiums. Not a bad wheeze. The flimflam they give you about risk is just that, flimflam.

 

So where are we now? Your average law abiding citizen, going about their business ends up paying for everyone else’s bad behaviour in an economic system that benefits the few. The gap between the haves and have nots is widening. It is curious that migrants are fleeing countries that are described by the likes of Mr Trump and his acolytes as shit-holes. They seek to escape the crap that surrounds their lives. What appears to be happening is that the isolationist policies (Brexit – America First and other Nationalist right-wing thinking) is turning this country as well as the United States into shit-holes, which no doubt will soon see refugees going the other way. This current conservative government is doing everything it can to get us there. The very fact that water companies were given a licence to print money without any proper supervision has allowed them to dump crap all over the place.  Stockholders have benefited for years from treating this country like a toilet. Having fleeced the customers since privatisation, am I wrong in claiming that they now want the average law abiding customers to pay to clean up the mess? 

 

Just what has Ofwat been doing? On the website it states:the website sets out how we will work with others for the benefit of customers of water and wastewater services and wider society in England and Wales both now and in the future.

 

So why have things got so bad people have to be warned not to go in the water because it can kill you, or certainly make you very sick? The web site also states:

Our strategy sets out our three strategic goals: To transform water companies’ performance; to drive water companies to meet long-term challenges through increased collaboration and partnerships; for water companies to provide best value and outcomes for customers, communities and the environment, now and in the future.

 

When does that start? Ofwat was formed on April 1st, 1989. I guess it was an appropriate date and they have been fooling us for the last 35 years. Is it any wonder I find it difficult to sit down and write about nice things, and not go off on a rant every 5 minutes. Enough for now and perhaps more of this anon. I need to go to the loo.


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