EY predicts slowdown in premium growth as cost of living pressures bite

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UK insurers face slowing premium income growth this year, as high inflation, cost of living pressures and a rise in borrowing costs continue to hit product demand, according to EY.

The experts forecast non-life growth of 4.5% in 2023, down from a projected 4.9% in 2022, slowing to 3.8% in 2024, before picking back up to 4.7% in 2025.

In November EY warned that UK motor and home insurers would make the biggest annual loss in 2022 for over a decade and forecast further losses for 2023

Across 2022, net combined ratios would be 115% in motor and 116% in home staying high this year at 114% and 109% respectively, EY predicted.

Last week Fitch Ratings concurred that the

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NSM Insurance has signed up to buy InsurEvo Group, including AllClear Insurance, InsureandGo and JustCover, from Synova.

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