UK motor insurers are on target to make their first profit in fourteen years, next year 2009.
A report by analyst, Datamoniter, suggests that the market will continue to make a loss this year, as claims outweigh premiums. This trend is set to change in 2009, with the market showing a profit of £30million.
The meteoric rise in personal injury claims in particular, has driven up costs for the insurance companies, but they are unable to recoup their costs through an increase in premiums while in such a competitive environment, but prefer to keep the business anyway and operate at a loss.
Insurance companies have fixed their sights therefore not on profitability, but on market share.
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