EY warns of loss making home insurance market in 2018
Consultants flag falling rates and rising costs and predict 101.7% market NCR.
EY has warned that profits for home insurers could drop this year and fall into the red in 2018 as rates fall and costs increase.
Analysis by EY revealed that the net combined ratio is expected to be a “barely profitable” 99% in 2017. This is despite much of the UK avoiding the worse storms so far this year.
In 2018 it is expected to worsen further to 101.7%. Claims costs are also predicted to rise by 3.7% this year and in 2018.
EY noted that home insurers have experienced continued rate
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