Anti-fraud and claims handling could save the day
The European Union Gender Directive that comes into force this week will cut 2% from insurers’ profitability next year, according to Ernst & Young.
Ernst & Young financial services team partner Catherine Barton said most insurers would struggle to make a motor underwriting profit at all, according to The Daily Telegraph.
She said that the best-placed insurers were those who had good anti-fraud and claims handling measures and did not rely heavily on referral fees.
“At best, the market will only just break even this year, and the gender directive, along with a combination of legislative and market pressures next year, will put continued profitability under threat,” Ms Barton said.