Motor market will go back into the red in 2014, says EY
Prediction follows news that the sector turned a profit in 2013 for first time in 20 years.
Motor insurance underwriting will make a loss in 2014, according to EY. The financial services firm stated that the market will return to loss-making after just one year of profit, in 2013.
According to the accountants, “the forecast for 2014 suggests that in order to reach a net combined ratio (NCR) of 100%, reserve releases would need to hit unprecedented levels of 14%”.
EY added that this would results in rising premiums in the long term.
The forecast for an NCR of 109.3% in 2014 would still
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