Motor premiums set to rise by 10%

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