Statement on Insurance Ireland’s 2017 Factfile: From 2013-2017 Irish insurers made underwriting losses of €1.1 billion in motor and business insurance
- Irish general insurers had underwriting losses in motor of €757 million and €349 million in business insurance from 2013-2017
- The business markets were still loss making in 2017 with underwiring losses of €47 million
- In 2017, insurers made €3.50 on every €100 of motor insurance premium
- In 2017, at a Non-Life market level, insurers made €4 for every €100 of premium income
- In 2017, in business insurance, insurers paid out €112 for every €100 of premium income
- In 2016, the return on premium for the Non-Life sector - before tax - was €15.8 million in a market of €3.25 billion, which is a 0.49% return, while in 2017 the return was €227 million, 6.5% in a market of €3.51 billion
Kevin Thompson, CEO of Insurance Ireland said, “Insurance Ireland publishes its Factfile every year to provide insight into the market. Our 2017 Factfile shows the recovery in the Non-Life insurance market has not been uniform with business insurance underwriting losses of €47 million in 2017. In the five years to 2017, total underwriting losses in business insurance were €349 million and in motor insurance they were €757 million. Motor insurance returned to underwriting profitability in 2017 to bring the Non-Life market to an overall underwriting profit of €126.5 million for the year, with a further €101 million in investment income. This represents a 6.5% return in a market of €3.51 billion, up from a return of 0.5% in 2016. Insurers must maintain underwriting discipline in what is still a volatile market as key claims reforms have not been delivered and this must be addressed as a matter of urgency. Like all businesses, insurers want stability and claims cost reform is the means to deliver this for policyholders.”
Business insurance is Employers’ Liability (EL) and Public Liability (PL).
The reference to €3.50 profit on every €100 of motor insurance premium relates to the Combined Operating Ratio for motor of 96.5%.
The reference to €4 profit on every €100 of premium relates to the Combined Operating Ratio for the Non-Life market of 95.9%.
The reference to €112 paid out on every €100 of business insurance premium relates to the Combined Operating Ratio for the liability markets (EL & PL) of 111.8%.