Performance Ratio Benchmarking in UK Motor Insurance 2008

Published by: Datamonitor

Published: Jan. 19, 2009 - 287 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

The motor insurance market recorded a heavy underwriting loss in 2007 and motor insurers made significant reserve releases

The motor insurance market recorded an accident year combined ratio of 113.2% in 2007

Motor insurers have increasingly relied on reserve releases in recent years

The average loss ratio of the top 10 UK motor insurers increased in 2007

The average loss ratio of the top 10 motor insurers rose by 0.9 percentage points in 2007

Four insurers saw their loss ratios increase

Six of the top 10 motor insurers recorded a decline in their loss ratios in 2007

The average expense ratio of the top 10 UK motor insurers decreased marginally,with Allianz recording the largest reduction in 2007

The average expense ratio of the top 10 UK motor insurers decreased by 0.1 percentage points to 27.4%

RSA,Norwich Union and UKI saw the largest increases in their expense ratios

Half of the top 10 UK motor insurers achieved an improvement in their expense ratios

Allianz witnessed the greatest improvement in its expense ratio which was significantly larger than its peers

Zurich,NIG,Churchill and Fortis recorded a moderate deduction in their expense ratio

The average combined ratio of the top 10 UK motor insurers increased moderately

The average combined ratio of the top 10 motor insurers increased by 0.7 percentage points

Four insurers recorded an increase in their combined ratio

Six of the top 10 insurers recorded a reduction in their combined ratios in 2007

APPENDIX

Supplementary data

Definitions

Average

Earned premiums

Gross premium

Net premium

Written premiums

Loss ratio

Expense ratio

Combined ratio

Further Reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Combined ratio and accident year combined ratio,total motor market,2003-07

Table 2: Premium income compared to change in loss ratio for the top 10 UK motor insurers,2006-07

Table 3: Premium income compared to change in expense ratio for the top 10 UK motor insurers,2006-07

Table 4: Premium income compared to change in combined ratio for the top 10 UK motor insurers,2006-07

Table 5: Motor insurance premium income by competitor for the top 20 UK motor insurers,2006-07 (£000s)

Table 6: Loss ratio for the top 20 UK motor insurers,2006-07

Table 7: Expense ratio for the top 20 UK motor insurers,2006-07

Table 8: Combined ratio for the top 20 UK motor insurers,2006-07

List of Figures

Figure 1: Motor insurers have become increasingly reliant on reserve releases to bolster their reported profitability

Figure 2: Six insurers recorded a decline in their loss ratio in 2007

Figure 3: Allianz's expense ratio improved significantly in 2007

Figure 4: A number of insurers saw their combined ratios increase in 2007

Abstract

• Essential performance measures for the top 10 UK motor insurers in 2007, including the loss, expense and combined ratios for these players
• Insight into the underwriting profitability of the top 10 UK motor insurers
• Information on motor insurance premium income changes for leading UK motor insurers in 2006 and 2007

• Understand changes in average motor performance ratios
• Benchmark your performance ratios against those of major competitors

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