Motor insurers set to raise premiums
16 June 2014
Car insurance premiums are likely to start rising over the next 12 months, according to Deloitte, the business advisory firm.
Average premiums fell by 12% between 2012 and 2014 but the trend is likely to reverse as insurers made only modest underwriting profits last year. They paid out £99 in claims and expenses for every £100 of premiums in 2013*.
James Rakow, insurance partner at Deloitte, said:
“After nearly two years of falling prices, I expect car insurance premiums to start rising in line with inflation over the next 12 months. The UK personal motor insurance industry returned to underwriting profitability in 2013 and reported some of the best figures since 2004. However, these figures were supported by the fact that insurers felt able to release claims reserves held at the previous year end and this trend cannot go on indefinitely.”
*Figures were presented at Deloitte’s 24th Annual Motor Insurance Seminar.
Notes to editors
About the net combined ratio
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.