Motor insurers to report “heavier” losses in 2026 – EY
UK motor insurers are expected to report heavier losses in 2026 with net combined ratio of 108% forecast, after reporting a small underwriting loss in 2025, according to EY’s latest analysis.
The weaker outlook is being driven primarily by premium rate reductions since late 2024, which are now feeding through to earned premium, alongside continued claims inflation, EY detailed.
Overall, for every £1 earned in premiums, the sector paid out around £1.02 in claims and expenses in 2025 and is forecast to pay out around £1.08 in 2026 and £1.03 in 2027.
Our latest analysis suggests 2026 could be the toughest year of the current soft cycle, with profitability coming under further pressure
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