DUBLIN--(http://www.researchandmarkets.com/research/zql6mn/uk_performance) has announced the addition of the "UK Performance Ratio Benchmarking: Motor Insurance 2012" report to their offering.)--Research and Markets (
“UK Performance Ratio Benchmarking: Motor Insurance 2012”
Benchmarking cost structures is vital to understanding combined operating ratios (COR) and their effects on profitability and business performance. This brief analyzes the loss, expense, and COR of the UK private and commercial motor market at an industry level, as well as the performance ratios for the top 10 private and commercial motor insurers respectively.
- The private motor market's combined operating ratio (COR) recorded a significant improvement, aided by premium rate increases and a reasonably mild year. COR improved to 104.5%, down by 16.9 percentage points.
- The private motor market remains unprofitable and, with competition heating up in 2012 with discounts on rates below claims inflation, the market is expected to return to a worsening COR before it can break below 100%.
- The commercial motor market struggled to harden rates sufficiently to counter spiraling claims costs, achieving a small improvement in COR, which fell from 109.9% in 2010 to 104.8% in 2011.
Key Topics Covered:
UK PRIVATE MOTOR PERFORMANCE RATIOS ANALYSIS
- The market's combined operating ratio improved significantly in 2011
- The market remains inside unprofitable territory despite a huge COR improvement in 2011
- The market is unlikely to break a 100% combined operating ratio in 2012
- The market's loss ratio improved significantly due to hardened rates
- An increase in commission costs saw a small increase in the market's expense ratio
- Direct Line Group lost significant market share de-risking its book
- NFU Mutual's healthy loss ratio led the top 10 insurers for profitability
- Ageas has grown aggressively in the market while maintaining a profitable COR and efficient operations
- Aviva enjoyed a profitable COR in 2011 as it closed the gap on market leader DLG
UK COMMERCIAL MOTOR PERFORMANCE RATIOS ANALYSIS
- The commercial motor market's operating ratio improved by 5% in 2011
- COR remains above 100% despite the improvement in 2011
- The market's loss ratio saw a small improvement as a result of rate action
- The expense ratio for the market improved slightly as insurers sought much-needed efficiency savings
- Allianz outperformed the rest of the top 10 in the market with an 82.8% COR
- RSA achieved the best expense ratio of the top 10 in 2011 but has struggled with its loss ratio
- Market leader Aviva had a difficult 2011
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