Motor drives combined operating ratios down but it’s not all one way traffic

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The half year results season has revealed many improved combined operating ratios among insurers (see right) with rate rises in the motor market taking the credit. The commercial market hardening, conversely, does not appear to be any nearer.

Evidence of market hardening in motor was clear in the results of the UK’s largest motor insurer RBS. While it did not manage to break through the 100% combined operating ratio (COR) barrier the insurer did report a £206m operating profit for the first half