Contact: Ali Agmen-Smith
Deloitte
Public Relations
+ 44 (0) 207 303 0514
Motor insurance premiums for new business have fallen by 2% so far this year according to the latest Quarterly Motor Insurance Market Report by Deloitte. After starting off at £460 at the beginning of the year, average new business premiums have declined to just over £450.
The results come despite a move by Norwich Union to raise their rates and analysis which shows the operating ratio across the insurance market has deteriorated over the last 3 years. Deloitte predicts that the operating ratio for 2007 will be around 110%, a deterioration on 2006 of 1 point. Increases in premiums at this point in the year will help improve 2007 insurance results.
Commenting, Catherine Barton, insurance partner at Deloitte said: “The motor insurance marketplace has become increasingly competitive this year as insurers vie to win market share. This is great news for consumers who will benefit from lower quotes on their motor insurance.”
"In a deteriorating market we would expect insurers to be raising their premiums to counter rising claim costs. If other insurers choose to follow Norwich Union's lead then this could help curb the overall decline in the motor insurance market's operating performance."
Deloitte produces quarterly motor reports to enable motor insurers to keep their finger on the pulse of premium rate changes in the market. Deloitte held its annual series of motor insurance seminars at the end of November where it presented its views on future market performance and changing patterns of distribution.
Ends
Note to editors:
* Deloitte measures the average premium by using the cheapest direct/internet and cheapest broker premium offered for each of the 1000 insured risks in its sample portfolio.
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT.
Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.
The information contained in this press release is correct at the time of going to press.
