The Deloitte view for non-life insurers
Welcome to the July edition of the Insurance Market Update in
which we focus upon issues in the non-life insurance sector.
The motor insurance industry is facing a challenging environment
in which pressure is coming from an increasing cost of claims,
despite premium increases. After the unprecedented level of loss
experienced by the UK motor insurance market in 2009, this trend
continued into 2010 with insurers losing 20p for each £1
premium earned.
Although premium increases of up to 40% for private motor
policies have been widely reported in the press we estimate the
motor insurance market increased its premium base by 10% reflecting
selective underwriting for policy renewals and the lower increases
in the commercial market. When the results are announced for 2011,
we expect to a see a greater increase in premiums as the ratings
action which commenced in 2010 takes full effect. We also gaze into
the crystal ball and
