Best’s Market Segment Report: UK Non-Life Insurance – Withstanding Challenges, Navigating Uncertainty
AM Best's annual analysis of the 100 largest UK non-life insurers shows that while commercial lines insurers suffered substantial COVID-19-related business interruption and event cancellation losses in 2020, personal lines insurers broadly benefited due to lower claims frequency in their motor books, despite offering premium refunds.
The new Best’s Market Segment Report, “UK Non-Life Insurance – Withstanding Challenges, Navigating Uncertainty”, notes that while COVID-19 was a significant driver of volatility in underwriting results in 2020, there is a more stable picture in 2021. The final judgement in the business interruption test case led to some reserve strengthening for affected companies, but the vast majority of costs for these claims were booked in 2020 results as incurred but not reported claims.
The report also states that AM Best believes that the industry is well-capitalised with generally robust capital adequacy, which in AM Best’s view, provides the segment with a buffer to absorb future uncertainty. However, UK non-life insurers still face challenges such as the persistent low interest rate environment and a motor segment in which rates are expected to struggle to keep pace with claims inflation.
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=315591.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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William Keen-Tomlinson, ACA
Senior Financial Analyst
+44 20 7397 4395
will.keen-tomlinson@ambest.com
Catherine Thomas, CFA
Senior Director, Analytics
+44 20 7397 0281
catherine.thomas@ambest.com
Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
