Amlin chief Philipps believes Lloyd’s insurer ‘well placed’ to capitalise on improving conditions
Rates are rising in the UK commercial insurance market because of companies’ frustration with losses, according to Amlin chief executive Charles Philipps (pictured).
Speaking to journalists this morning, after the release of Amlin’s first-half results, Philipps noted that Insurance Times’s Insurance Monitor publication revealed the UK commercial market had been trading unprofitably for the past three years.
He said: “It is inevitable that eventually action is taken by competitors and by the market, and that is what is driving some rate increases. Recent statements by the likes of RSA support what I’m saying. It is becoming a healthier market.”
Fleet business drives rises
Amlin’s UK commercial business enjoyed average renewal rate rises across the book of 3.5% in the first half.
This was mainly driven by fleet motor, where rates rose by 7.6% in the first half of 2013 and have risen by an aggregate amount of 30% since 2010.
Commercial UK property rates rose 1.2% and liability rates were “positive”.
Property and liability
Philipps said: “Property has remained pretty stable, with a very modest rate rise in the first half. Helpfully, some of the liability lines, such as employers’ liability, have started to improve this year.”
Philipps expects the positive trend in UK commercial to continue, resulting in improved performance in Amlin’s UK book.
He said: “We are well placed to benefit from improving insurance market conditions in the UK commercial market.”
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