A.M. Best warns of need for rate rises
A.M. Best has warned that UK insurers’ ability to subsidise weak accident-year returns with reserve releases has been reduced and called for corrective pricing.
The ratings services company said that intense competition and the effect of the weak economic climate on investment returns and loss experience continued to put pressure on UK non-life insurers' financial performance.
In welcoming recent premium rate rises, particularly for personal motor, the company said that the actions should lead to better accident-year results in 2011, assuming a normal level of weather-related losses in the remainder of the year.
However it counselled that there were
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