UK - home insurance market edges into unprofitability
Saturday, 10 22 2016, Category: Insurance and Reinsurance, Country: United Kingdom
After eight years of good earnings, profitability is expected to plummet in 2016 for the UK home insurance market with the sector posting a net combined ratio of 99 percent, according to an EY analysis.
This estimate assumes that there will be no major flooding between now and 2016-end and reserve releases of 1.9 percent. Without such a reserve release, insurers would be in the red with a 101 percent combined ratio. The situation is set to worsen further in 2017.
Carriers struggle to remain competitive in a continued low interest rate environment with ever rising expenses.
Source: Intelligent Insurer