The future isn’t so bright for home and motor insurers in the UK, according to EY.
Citing industry forecasts by the top accounting firm, a Financial Times report said 2020 will prove to be difficult for both the motor and home insurance sectors amid expected underwriting losses due to increased costs.
“There is a lot for the industry to contend with,” the publication quoted EY’s UK general insurance leader Tony Sault as saying. Sault pointed out that pricing is lagging behind the rate of inflation.
Motor insurance, for instance, is forecast to post a combined ratio of 107% next year while that for home insurance is estimated to stand at 102%.
Among the culprits identified for motor are the Ogden rate impact and higher repair costs, and the rise in leaks claims as well as flood-related payouts for home.