Motor market ‘in a difficult situation’

A report from Standard & Poor’s, noting that UK motor insurers have racked up losses of £5bn since 1994, categorises the market situation as ‘difficult’. While a brief return to profitability at the end of 2002 was a possibility, after strong premium increases in recent years, long-term profitability was still questionable. Premium growth, 20% in 2000, has fallen to an average of 8% suggesting the cycle near its peak and competition due to make a come-back.