Standard & Poor's ratings services expects to see further weakening of results in the UK motor insurance market next year as the cycle turns, says a report published today.
Standard & Poor's credit analyst David Laxton said: "The U.K. motor industry over the past 20 years has been marked by a combined ratio that falls and rises in line with the familiar insurance cycle, but there has been a period of unprecedented stability in the past three years. However, despite this superficial stability there are, as highlighted last year, underlying indications that results are beginning to slip."
However, this deterioration is not expected to be as severe as in previous cycles as a result of the current low interest rate environment and more active cycle management on the part of insurers.
