Pressure predicted to build for household insurers
Ernst & Young has predicted a 95% combined operating ratio (COR) for household insurance across the industry for 2012 despite the impact of weather and flooding.
The accountants also predicted an 89% COR in 2013 provided there were no severe catastrophes.
However, the firm also forecast that the long-term sustainability of the household model will come under pressure in the next few years as new and existing players fight for market share.
The statements came as the advisor's analysis of household insurance results found that the industry as a whole achieved an underwriting profit for 2011, with a COR of under 89%.
Catherine Barton, partner at Ernst &
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