With claims costs growing above and beyond normal inflation insurers are clearly struggling to match this with premium increases sufficient to maintain historical levels of profitability.
This article considers the following three questions:
1. How have the major insurance groups adjusted new business premium rates in response to escalating claims costs, and what does this imply about adjustments to renewal prices?
2. What has been the impact on market share (and customer behaviour) as a result of the observed price changes?
3. How strong is the correlation between industry claims experience, price, and market share?