Reinsurance is common and isn't unique to car insurance. Just because it takes a while for you to find the competitive quote doesn't mean that there's something wrong with the industry. Yes, as I said, it could be improved. But allegations or a cartel or price fixing are way, way off. Car insurance is one of those costs that people just expect to keep falling, contrary to inflation and also contrary to the actual costs of meeting overall liabilities. Expectations are unfortunately often divorced from reality, although we'd like to think otherwise especially when we have to pay for them.
I come from a different experience with insurances: back in Italy we have pretty much the same model of insurance (you start from 14th class and work all the way up, and for every year you go up you pay less), because let's be clear, if you're insured and don't cause loss to your company (because you're a cautious driver or because you don't drive a lot), you should be rewarded. They take into account the value of the car, your motoring history, what kind of use of the car you make and then give you a price, and you can rest assured that it's less and less every year.
The way it works here instead is that no matter how good you are
, your price can fluctuate, and this happens mainly with reinsurers, who don't have an insurance capital, but work on the best market offers they're given (to which they need to charge their costs as well). Take again the example of Green Insurance: their best offer for me (via Allianz) was 121 quid a month, while Allianz directly quoted me for 59 quid a month!! The Green Insurance dragged me in last year with a very competitive price, and then they play the game of raising the premium "because all insurances do it" or "because of your area rating". They don't care about keeping customers, that's not their job, their job is making money and speculating through it.
And what's that crap about area codes? I was told by the operator that my area is rated "60" , and this rating is due to the number of claims in the area (not for accidents that happen in the area mind you, but for accidents that people that live in my area claim for). So what should I do, go around the neighbourhood and sensibilise people to drive more responsibly? And why doesn't my no claims bonus prove that, unlike my neighbourhood, I'm not a bad driver?
This also means that ALL insurance companies work on the same scheme of ratings, which again is further evidence of no real competition, but lobbying.