Forthcoming regulatory changes and claims inflation in the UK motor market will cause price increases of about 12 percent in 2017, according to Bernstein analyst Thomas Seidl.
In a note released today Seidl predicted the increases would result in a 5 percentage point improvement in attritional loss ratios.
But he noted that claims inflation and insurance premium tax would consume 7 percent and 5 percent, respectively, of real margin improvement.
The analyst said the market needed real margin increases as...
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