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


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.

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