Fitch warns of ‘dire’ profitability for insurers in ‘bleak’ picture

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The outlook for UK home and motor insurers’ profitability “remains pretty dire for 2023”, according to Federico Faccio, senior director of EMEA insurance at Fitch Ratings.

The specialists first warned of a deteriorating outlook for the UK non-life company market sector in November.

Faccio listed pressure on earnings from the Financial Conduct Authority’s dual pricing ban and continuing high claims inflation among five factors for the view.

The others were claims frequency normalising after the pandemic, the time it takes for pricing corrections to filter through to profits and strong competition in the market.

Inflation

Similar trends can also be seen in

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