- Published: March 2011
- Region: Great Britain, United Kingdom
Performance Ratio Benchmarking in UK Motor Insurance 2009
- Published: December 2009
- Region: United Kingdom, Great Britain
- 12 pages
This brief analyzes the loss, expense and combined ratios of the UK private and commercial motor markets at an industry level as well as the performance ratios for the top 10 private and commercial motor insurers respectively. The expense ratio is examined and broken down by its component parts: commission, administrative and other acquisition expenses.
- Key performance measures for the top 10 UK private and commercial motor insurers in 2008.
- Insight into the underwriting profitability of the top 10 UK private and commercial motor insurers.
Highlights of this title
The average fee charged by an aggregator for a motor sale has increased over the last 12 months as has aggregators' share of new business sales. These two factors will place an upward pressure on commission ratios.
It is notable that the commission ratio has been increasing since 2006, from 8.6% to 11.2% in 2008 which is due to the soft market conditions.
Key reasons to purchase this title
- Gain insight into the reasons for different cost structures held by insurers.
- Benchmark your performance ratios against those of major competitors.
- Identify which motor insurers became more or less profitable in 2008.
UK PRIVATE MOTOR PERFORMANCE RATIOS ANALYSIS
Aggregators are pushing up commissions
Aggregators are driving up commission costs
The market leader RBS possesses one of the lowest commission expense ratios
Liverpool Victoria is running a high COR as it builds out the business
UK COMMERCIAL MOTOR PERFORMANCE RATIOS ANALYSIS
Softening market condition drove up UK commercial motor market's commission ratio
Fees paid to brokers are pushing up commission ratio
Aviva incurred a high expense ratio in 2008
Reported year combined ratio
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List of Tables
Table 1: Top 10 private motor insurance groups' performance ratios, 2008 (%)
Table 2: Top 10 commercial motor insurers' performance ratios, 2008 (%)
List of Figures
Figure 1: Fees paid to aggregators have pushed up commission costs
Figure 2: RBS's largely direct model means it runs a low commission ratio
Figure 4: Liverpool Victoria is running a high expense ratio as it builds out the business
Figure 4: The soft market has driven up the commission ratio
Figure 5: Aviva recorded a higher than average expense ratio in 2008
Figure 6: Tradex and QBE recorded the lowest CORs, post reserve releases