Monday, September 1, 2025
23.8 C
Lagos

A.M. Best: UK Non-Life Insurers’ Profits under Pressure

Profit margins in the U.K. non-life insurance sector are under pressure this year as companies fight to maintain pricing discipline in an extremely competitive market, according to a new A.M. Best Special Report. Premium rates are falling in personal lines and most notably for motor business.
“Non-life insurers have made significant progress toward compliance with Pillars 1 and 2 of Solvency II, covering its financial requirements and risk management and governance standards”
The Best’s Special Report, titled, “U.K. Non-Life Insurers Compete Fiercely, Brace for Solvency II Implementation,” also states that regulation continues to consume considerable management time. Preparation for Solvency II, the proposed regulatory and capital regime for EU insurers, has gathered pace after the approval of Omnibus II in March this year. U.K. insurers will be subject to the Solvency II regime from 1 January 2016.
“Non-life insurers have made significant progress toward compliance with Pillars 1 and 2 of Solvency II, covering its financial requirements and risk management and governance standards,” said Catherine Thomas, Director of Analytics and author of the report. “
However, there has been a relative lack of progress on the reporting and disclosure requirements of Pillar 3, and companies will need to devote significant resources to this pillar if they are to meet the demanding requirements of the new regime by 2016.”
Other key findings in the report include:
• Motor: this sector has reported underwriting losses in each of the past five years, due to inadequate pricing and poor claims experience linked to the escalating cost of third-party bodily injury claims. However, the implementation of legal reforms in April 2013 is expected to have a positive impact on claims experience.
• Property: Accident-year results improved in 2013, reflecting a lower level of weather-related claims despite significant flood and storm losses in December. The frequency and severity of weather-related events are the main drivers of performance in the U.K. property sector. There have been significant advances in flood risk management and forecasting in recent years, along with improved flood risk models.

spot_img
spot_img

Hot this week

Ecobank Nigeria @ 40: Group Unveils N60m in Cash Rewards Program for Customers

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

GOCOP 2025: Conference on Governance Challenges, Prospects Set for October 9

The Guild of Corporate Online Publishers (GOCOP) has announced...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

Northwest: The Lion’s Share of Tinubu’s Projects

By Tanimu Yakubu Director-General Budget Office of the Federation The Lagos Illusion The...

From Devaluation to Domination: How Tinubu’s Exchange Rate Reforms Turned the Naira into Nigeria’s Export Engine

By Tanimu Yakubu When President Bola Ahmed Tinubu’s administration...

Topics

Flutterwave: Kenyan Tech Founder Loses $900, 000 Appeal

Clara Wanjiku Odero, a Kenyan tech founder and CEO...

INEC Meets With Political Office Holders on Tax Compliance

L-R: Executive Chairman, LIRS: Mr Ayodele Subair, Chairman, Code of...

NAICOM, CIIN Laud IMT for Advancing Tech-Driven Insurance in Nigeria

The Commissioner for Insurance (CFI) and the CEO of...

The Need for Non-Oil Sector Development

The current state of oil prices in the international market is a divine blessing for Nigeria. It represents a unique opportunity for Nigeria to re-discover itself and diversify its sources of national revenue or slump into deeper financial crisis and poverty. It has been proven in the lives of individuals, organisations and nations, that certain negative experiences or consequences spurred them to innovations and critical thinking, and led them to greater heights. It is our hope that such could become of our own country.

‘IFRS 9 Will Enhance Transparency of Financial Transactions in Insurance Sector’

Mr. O.S. Thomas, Deputy Commissioner (Technical), National Insurance Commission...

Roland Okoro Unveils AM JOURNAL at WAICA Confab in Accra, Ghana

From Left: Eddie Efekoha, Past President of WAICA; Roland...

Sovereign Trust Insurance: N16.3bn Assets, N13bn Premium, N4bn Claims in 2021

Olaotan Soyinka Managing Director/CEO Sovereign Trust Insurance Plc Sovereign Trust Insurance Plc...

Dell Expands UltraSharp Monitor for Innovation, Transformation

As a new generation floods the job market, there...
spot_img

Related Articles

Popular Categories

spot_imgspot_img