Insurance industry figures have warned that motorists in Britain should prepare for another year of sharp increases in insurance, as providers deal with rising costs.
Admiral Group will continue to increase auto insurance rates and expects the rest of the market to follow suit, CEO Christina Nestaris said on an August earnings call.
This view is reflected in a report by EY that forecasts prices will rise 16% in 2023, followed by an 11% jump in 2024.
One of the most striking examples of inflation in the UK is car insurance, with rates for transport insurance rising nearly 50% in the year to July, according to data from the Office for National Statistics.
The Association of British Insurers said average car cover reached £511 in the second quarter – the highest since it began collecting data in 2012.
It comes at a time when insurers are struggling with rising costs, with EY predicting that insurers will spend £108.50 for every £100 taken in premiums in 2023.
Direct Line shares have fallen about 28% so far this year after several profit warnings and the resignation of its CEO in January. Its shares rose 2.3% today after it announced that a new president will take office next year.
Mohammed Khan, who leads PwC’s general insurance practice in the UK, warned: “Although the CPI is expected to fall at the end of this year, if you look at the factors that explain why claims are rising, These factors will not change. over the next 12 months.”
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What happened overnight
Asian stocks rose supported by Wall Street’s rise that came as a result of positive reports on consumer confidence and job openings.
Japan’s Nikkei 225 index added 0.9% to 32,529.72 points. South Korea’s Kospi index rose 0.6% to 2,567.44 points. Hong Kong’s Hang Seng rose 0.4% to 18,563.39, while the Shanghai Composite Index rose less than 0.1% to 3,137.72.
Australia’s S&P/ASX 200 index jumped 1.4% to 7,310.60, after the Australian Bureau of Statistics announced that the monthly consumer price index rose 4.9% in the 12 months to July.
This was lower than the expected 5.2%, and is the first time since February 2022 that the index has fallen below 5%.
Wall Street stocks rose on Tuesday after new data revealed a surprise drop in the number of job openings, raising the chances of the Federal Reserve continuing its policy of easing interest rates in the future.
The Dow Jones Industrial Average closed up 0.9 percent to 34,852.67 points.
The broad-based S&P 500 rose 1.5% to 4,497.63, while the Nasdaq Composite, which was dominated by technology stocks, rose 1.7% to end the day at 13,943.76.
Bond yields fell, with the 10-year Treasury yield falling as much as 9.8 basis points to 4.104%.