British car insurers have reported a loss of € 2.3 billion for the financial year 2010. The companies showed a combined ratio of 120%. In addition, it is not expected that there will be a profit in 2011. These findings were recently presented by Deloitte at an annual insurance seminar that was hosted by the consulting firm.
In 2009, the combined ratio was almost equal to the ratio reported this year – 119%. The increased premiums in 2010, averaging around 10%, thus have not yielded good results. According to Deloitte shareholders are only interested in companies that find additional products to sell to their customers.
Deloitte's research also showed that the situation for car insurance companies has been distressing for years. Losses have until recently been disguised due to released provisions and financial benefits. According to the consulting firm a sharp rise in car insurance premiums can be expected because of this situation. Insurance companies are also further tightening their fraud prevention, data loss and claim management.