Despite the UK motor insurance sector delivering its best underwriting results since 2006, premiums will continue to increase unless proposed legislative changes are brought into action and fraudulent claims addressed. Intelligent Insurer investigates.
A recent report on the UK motor market found that an analysis of the 2013 results of the majority of listed UK insurers indicated that the net combined ratio of the group will be around 101 percent, a 2.5 percent improvement on last year, and the best underwriting results in the sector since 2006.
However, the strong results depend on the referral fees ban delivering as intended and as there are already signs that this may not be the case, there are fears that insurers could face late submission of claims for the next three years.
“While referral fees themselves are banned, it looks like there are still ways in which customers can be encouraged to make claims, and that those encouraging them can receive payment in a form other than a referral fee,” says Catherine Barton, head of retail property & casualty actuarial, EMEIA at EY.
Motor, Swiss Re, Driverless cars