Benchmarking cost structures is vital to understanding combined operating ratios (COR) and their effects on profitability and business performance. This brief analyzes the loss, expense, and COR of the UK private and commercial motor market at an industry level, as well as the performance ratios for the top 10 private and commercial motor insurers respectively.Report Scope
- Identify the key expense pressures facing the motor insurance market.
- Benchmark your performance ratios against those of major competitors.
- Discover what actions the best performing insurers have adopted in improving operating ratios.
The private motor market's combined operating ratio (COR) recorded a significant improvement, aided by premium rate increases and a reasonably mild year. COR improved to 104.5%, down by 16.9 percentage points.
The private motor market remains unprofitable and, with competition heating up in 2012 with discounts on rates below claims inflation, the market is expected to return to a worsening COR before it can break below 100%.
The commercial motor market struggled to harden rates sufficiently to counter spiraling claims costs, achieving a small improvement in COR, which fell from 109.9% in 2010 to 104.8% in 2011.Reasons to Get this Report
- How do your performance ratios compare to the market average and the top 10 insurers?
- Which of the market's top 10 insurers performed best in 2010?
- How has the market as a whole fared on expense and loss ratios in 2010?