The UK motor insurance market is expected to only break even in 2025, and be loss-making in 2026, according to EY’s latest analysis.
Following a net combined ratio (NCR) of 97% in 2024 – the first time the motor insurance sector achieved underwriting profitability since 2021 according to EY, NCRs of 101% and 111% respectively are forecast for the next two years.
The deteriorating outlook is driven primarily by continued inflation and falling premiums over the course of the year, the consultancy added.
Following a rise of 14% in consumer premiums in 2024 – as firms increased rates to reflect the impact of rising inflation – EY
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