But Datamonitor says the move into profit will end in 2010
The private motor insurance market could finally make a profit in 2009 after 14 years of unprofitability, according to analyst Datamonitor.
But it warned that the market would move quickly back into a loss in 2010 as competition intensified.
Datamonitor predicted that the motor market would make a loss in 2008, but move into a profit of approximately £30m in 2009 as premium income will grow at a faster rate than claims costs.
Datamonitor financial services analyst Andrew Haslip said: “2009 could be a historic year for the private motor insurance market, putting an end to a painful 14 consecutive years of losses.”
The UK private motor insurance market has been chronically unprofitable for underwriters due to high claims inflation that has driven up overall costs, and competitive pricing by insurers to gain market share.
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.
