UK premiums stay low despite tighter margins
UK firms are set to benefit from low insurance premiums during second-quarter renewals as insurers chase volume at all costs.
Figures from Aon UK’s quarterly Market Pulse index reveal a dramatic swing in the outlook for commercial motor insurance, with 100% of insurers forecasting stable rates after 90% earlier predicted rates would rise.
Some 60% of casualty and liability insurers predict rates will decline or at least remain stable, against 12% in January.
Half of the UK underwriters surveyed believe property insurance rates will decline or stay level during the second quarter, against just 11% in first-quarter forecasts.
The softer outlook comes despite the fact insurers are handling more claims and face declining premium volume and investment income.
“The stagnant insurance market and the need for UK business to keep down costs has led to competition and hence the turnaround in insurers’ opinions,” Aon said.
Figures from Aon UK’s quarterly Market Pulse index reveal a dramatic swing in the outlook for commercial motor insurance, with 100% of insurers forecasting stable rates after 90% earlier predicted rates would rise.
Some 60% of casualty and liability insurers predict rates will decline or at least remain stable, against 12% in January.
Half of the UK underwriters surveyed believe property insurance rates will decline or stay level during the second quarter, against just 11% in first-quarter forecasts.
The softer outlook comes despite the fact insurers are handling more claims and face declining premium volume and investment income.
“The stagnant insurance market and the need for UK business to keep down costs has led to competition and hence the turnaround in insurers’ opinions,” Aon said.