Fitch warns of ‘dire’ profitability for insurers in ‘bleak’ picture
The outlook for UK home and motor insurers’ profitability “remains pretty dire for 2023”, according to Federico Faccio, senior director of EMEA insurance at Fitch Ratings.
The specialists first warned of a deteriorating outlook for the UK non-life company market sector in November.
Faccio listed pressure on earnings from the Financial Conduct Authority’s dual pricing ban and continuing high claims inflation among five factors for the view.
The others were claims frequency normalising after the pandemic, the time it takes for pricing corrections to filter through to profits and strong competition in the market.
InflationSimilar trends can also be seen in
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Insight
Blog: The compliance threat to M&A
Jill Hambley, managing director of Insurance Compliance Solutions, tackles the compliance basics smaller brokers must keep front of mind before listing a business for a potential sale to make sure any deal doesn’t end up on the scrapheap.
Hedgehog Risk seeks new markets after securing US investment
SIG Insurance has acquired a substantial stake in specialist sports and prize insurance provider, Hedgehog Risk.
CFC adds property damage to large line cyber product
CFC has added property damage to its large corporate cyber proposition, stating the move came in response to broker demand and addressed a gap in the market.
Zurich adds Gallagher’s Louise Martin for new business role
Zurich has appointed Louise Martin as head of new business development, joining from Gallagher.
Five insurers scoop Gracechurch’s regional Service Quality Marques
Allianz has been awarded two UK regional market insurer Service Quality Marques by Gracechurch, with Arch Insurance, Axa, Chubb and Ecclesiastical also being accredited.
Howden consolidates Birmingham offices into one
Howden has consolidated multiple Birmingham offices into one central hub, with over 120 insurance advisors.
AIG expands Jon Hancock’s role
AIG has expanded former Lloyd’s and RSA leader Jon Hancock’s role, with additional responsibilities in global personal lines, as it reorganised into three segments.
Circle expands again in 2024 financial year
Circle 1991, the holding company for Circle Insurance Services, grew turnover by 4.8% in the year ended 30 April 2024, a Companies House filing has revealed.