Motor insurance: The road to profit

Motor insurers must be suckers for punishment. Despite the consistently poor returns from the market, a large majority of unflinching underwriters remain unmoved, sticking with the loss-making line.

Year after year, personal lines insurers, despite isolated pockets of individual success, dabble in a market that has failed to make an operating profit as a whole since1994. According to a recent Deloitte report, the combined operating ratio of the sector improved to a still-unprofitable 105% for 2012, its second fall in two years.

Could recent legislation provide the turning point motor insurers need to drive them into long-awaited profitability, or are tough times set to continue? Download this article to find out.