Lockdowns expected to bring big drop in claims costs this year, but 2021 predicted to turn negative

By Insurance Times 2020-11-24T07:51:00

Underlying claims inflation, Brexit and the FCA’s new pricing rules could turn underwriting profits red next year, predicts EY

UK motor underwriting will be profitable this year due to a substantial reduction in claims as fewer drivers took to the roads during the pandemic lockdown, according to EY.

Claims costs are expected to fall by 12% and the net combined ratio should drop to 93.8% - a 7.2% better result compared to 2019, EY said in its UK Motor Insurance Results report.

If you are already registered, please sign in here

Register now for unlimited access

For continued access to free content on the website please take a few moments to register, or sign in if you have already registered.

Keep up to date with the latest industry news
Sign up to enewsletters
Create a profile and post comments on stories