A Fitch Ratings report said the price war between UK insurers...
A Fitch Ratings report has warned the price war between UK insurers would prevent the market from showing significant improvements in 2005.
The report on the GI market said price competition was set to intensify in 2005 and underwriting profit margins would become tighter.
The report: 'The UK Non-Life Market: Enjoy it While it Lasts - But Not Too Much', warned insurers to be aware of cutting prices in areas which will later require reserves to be strengthened.
Developments in regulation and risks relating to flooding, asbestos and the cost of litigation will pose further challenges to the sector, it said.
However, Fitch said it does not believe that the development of new sales channels will ease the entry of new players into the market.