No major climate-associated loss in first eight months of 2013
The UK non-life insurance market has negotiated the first eight months of the year without suffering large climate-associated losses.
According to U.K. Non-Life Insurers Weather Challenging Market Conditions, a report published by AM Best Co, weather-related claims reached £1.19bn in 2012, the highest since the £3bn of claims in 2007. The elevated weather-related claims did not have a material impact on overall underwriting results.
Motor continues to drag down the market, posting losses in each of the past five years. Its combined ratio lifted slightly in 2012 to 106.6%, having been as high as 119.5% in 2009. “The net accident-year loss ratio deteriorated to 86.2% compared with 84% in 2011, but this was offset by reserve release, while 2011 saw a very small reserve strengthening,” said the report.
UK insurers can expect a difficult future as economic and regulatory conditions apply pressure to the sector.