EY report record results for Insurers due to COVID-19

EY reports on record profit results for Insurers as a result of COVD-19 .

The article goes on to explain why the results improved greatly in 2020 but warns of this picture changing rapidly as a result of many challenges facing the industry.

Trend Tracker’s latest report explores this topic further (subscribe here), covering  the FCA pricing changes, growth of new entrants and acceleration in tech solutions as well as consumer sentiment changing their approach to value from their Insurance.

Tony Sault, UK General Insurance Market lead says “While lower premiums is good news for consumers, the sector faces ongoing and significant underlying cost challenges – which were to a large extent masked by the lockdowns – and the rise in profitability in 2020 will likely be a blip. Motor insurers continue to face the same repair inflation trends they have been struggling with for years, and now will have to factor in the higher compliance costs related to the FCA’s pricing rules as they re-balance the premiums offered to new and existing customers.”