The motor insurance market is showing no signs of hardening, with insurers continuing to slash rates. Statistics compiled by ABN Amro suggest that IAG is using its NSW flagship NRMA Insurance to corner market share ahead of the full integration of AAMI into Suncorp.

Over the six months to January 2007, NRMA has slashed quotes for motor vehicle cover across the country – by up to 11% in some states. AAMI has managed to push through nominal increases in Sydney, Adelaide and Perth.

Stablemate GIO has made deep cuts in motor vehicle quotes in Sydney and Brisbane, while it has raised prices for Melburnians by 8% and kept Adelaide and Perth prices roughly the same.

ABN Amro analyst Matthew Whight told the Australian Financial Review IAG could be positioning itself to “collect attrition” from Suncorp.

Attempts yesterday by Sunrise Exchange News to obtain a copy of the ABN Amro report were unsuccessful. A spokesman says it’s “not for publication”…