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Chuks Udo Okonta
AM Best is maintaining its Negative outlook on the United Kingdom non-life insurance segment, Inspenonline reports.
The agency noted that economic uncertainty remains a key headwind for UK non-life insurers, adding that COVID-19-related lockdown measures coincided with the country’s preparation to leave the European single market, and together contributed to the biggest economic contraction since records began.
This is expected to maintain pressure on premium income. In addition, strong competition and claims inflation are likely to dent technical results in the motor line of business, which accounts for around a third of UK non-life premiums, it said.
A new Best’s Market Segment Report, “Market Segment Outlook: UK Non-Life Insurance” also cites increased regulatory scrutiny of pricing practices for home and personal motor insurance and ongoing exposure to weather-related events as factors weighing on the outlook.
