AM Best commentary: The lie of the land

Competition in the UK non-life market remains fierce in 2014 and insurers' profit margins are under pressure as they struggle to maintain pricing discipline. Rate deterioration is most pronounced in the motor sector, which is anticipating lower claims costs following legal reforms in April 2013. Results will also be affected by flood and storm losses in the first quarter of the year, and the frequency and severity of further weather-related events will be a key driver of final performance.

This article studies the impact of regulation, falling rates and low returns on investment, whilst focusing on three key business lines:

1. Liability.

2. Motor.

3. Property.