Industry frets over motor premium drop

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Recent figures show that motor premiums fell in the first quarter of 2012, the first such reduction since 2008.

The survey from Confused.com and Towers Watson revealed that the average cost for a comprehensive policy fell by £19 between the end of last year and the end of March, which is undoubtedly news that will be welcomed by consumers.

But it is not such good news for large parts of the insurance industry so it is important to establish whether or not this is merely a blip or the first in a