Insurers and reinsurers face £3.5bn Ogden hit, says EY

Bag of money

The motor insurance market has seen significant underwriting losses in 2016, according to EY’s annual UK motor insurance results seminar.

Following the review of the discount rate for personal injury claims, there was a sharp worsening in the industry’s net combined ratio (NCR) to 109.0% in 2016 from 100.5% in 2015.  

EY stated that although the change to the discount rate was announced in February this year most insurers reflected the impact on outstanding claims in their 2016 figures.

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