Profits made by general insurers will not improve at the rates seen in 2003 and 2004, according to Fitch Ratings.
In a report titled “Enjoy it while it lasts – but not too much,” the agency said that good operating conditions, a favourable point in the pricing cycle and a lack of domestic catastrophe had resulted in the successes of 2004.
However, price competition in a mature market and the need to strengthen reserves to cover asbestos and losses from 1997-2001 would squeeze profit margins, the agency warned.
Developments in regulation and risks relating to flooding, asbestos and the cost of litigation would also pose challenges to the sector, Fitch said.
The agency concluded that general insurers had the capacity to ride out the challenges and therefore maintained a stable outlook on the sector.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
