Rise in Motor Insurance Premiums
According to the professional services firm, insurance companies have lost income by lower investment returns during the recession. For the consumer, the benefits of accessing cheaper motor insurance deals could be set to increase next year, as Deloitte states motor insurance premiums are likely to increase. Deloitte predicts a 5% increase in premiums is likely to be seen in 2010, as insurance companies try to balance the books.
James Rakow, insurance associate partner at the firm, noted the motor insurance industry has been struggling since 2007. He says: “Indications are that the current year trading is far from being profitable at a market level and this is likely to remain the case in 2010. For the last few years prior year reserve releases have been at exceptionally high levels.
I do not expect to see anything other than modest levels of reserve releases in 2009.”