Car insurance industry predicted to return to profitability

Tue, 02 Nov 2010

After two years of steep losses, Britain's car insurance sector will return to profitability in 2011.

This is according to accountants Deloitte, who observed that profitability will be achieved provided it can push through more price rises without losing customers.

Car insurance firms are set for a collective loss of 1 billion pounds this year, after a record 1.6 billion deficit in 2009, Deloitte said.

"Without the support of prior year reserve releases, the only way the industry will return to profit is with sustained rate increases through to 2011," said Deloitte insurance partner Ian Clark.

"The challenge for motor insurers will be to do this and retain their customers."

Meanwhile, a report by Which? claimed recently that older women drivers are paying more for car insurance than their male counterparts.

Indeed, Which? found that 60-year-old women are charged as much as £80 more than men for their car insurance.
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