Motor premiums set to rise by 10%

Motor insurance premiums in the UK are set to rise by around 10% in the coming year, according to analysis by EMB, Europe’s largest firm of non-life actuaries. Despite the widespread public feeling that premiums are already too high, researchers found that motor insurers are not charging sustainable premium rates, particularly for private motor.

The conclusion is based on EMB’s annual review of the returns that all insurers in the UK make to the Financial Services Authority. Their findings show that the £10bn market was able to achieve a modest profit during 2006 only by releasing more than £800m in reserves from previous years. Even with these releases, they relied on investments to make good the shortfall between premiums and the amount they spent on claims and expenses.

For every £100 of premium motor insurers received they paid out

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.

You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Insurance Age? View our subscription options

Register

Sign up and gain access to five complimentary news articles every month.

Already have an account? Sign in here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have an Insurance Age account, please register now.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: