Car insurers lose £1m and have not made profit for 11 years

Deloitte has said that UK car insurers will have to raise premiums by a further 5% to make up for lower investment returns this year and will make a £1m loss, the FT reports.

“Motor premiums are on the increase,” said James Rakow, insurance associate partner at Deloitte. “The current year of trading is far from being profitable at a market level and this is likely to remain the case in 2010.”

The Association of British Insurers (ABI) said the car insurance industry has not made an underwriting profit for at least 11 years.