[alexriddle]

The UK motor insurance market is one of the most competitive in the world. Aggregators have created a situation where every insurer is looking for the slightest competitive advantage to drive themselves up the comparison table.

I don't have the most up to date figures but in 2022, combined ratio was forecast to be 115% for motor insurance - this means for every £1 in premium, £1.15 was paid out in claims and expenses. There is some income from investments but it's minimal compared to the pre 2008 situation.

Consequentially several insurers have exited the personal lines market as they cannot make money from it - RSA for example. 2022 is forecast to be the worst year for insurers since 2010.

The market does suffer from a cycle of 'hard' and 'soft' markets and there will be an overcorrection in the short term - over a few years, we'll see insurers seeing an opportunity to undercut the market and gain market share and premiums increases will ease.

TLDR - whilst it is painful to see premiums rising so quickly, it is not an industry that is awash with profits.

[mrlonglong]

That's quite an eye opener, thanks. I hadn't also thought about the recent conveyor belt of pretty nasty storms, that definitely would have an knock on effect on insurance. I think it is in the insurers' own interest that the Govt should implement NetZero measures asap to reduce the impact of these storms.