Private motor insurance could finally make profit in 2009

Under Datamonitor’s neutral forecast the UK private motor insurance market is expected to make a loss this year but move into a profit of approximately £30m in 2009 as premium income will grow at a faster rate than claims costs.

Andrew Haslip, financial services analyst at Datamonitor, said: “2009 could be a historic year for the private motor insurance market, putting an end to a painful 14 consecutive years of losses.”

However, Datamonitor’s forecast sees the market move quickly back into a