UK Motor Insurers Struggle to Find Profitable Strategies

Motor insurance market conditions in the United Kingdom and Europe are so difficult that many insurers in the business will have trouble gaining profitability unless a new business model can be developed. Consultancy Towers Watson noted the cost of injury claims in the U.K. motor market has been rising about 30% annually in recent years. Competitive pressure and low investment returns add to the misery, leaving insurers "in urgent need of finding a new competitive edge," according to Towers Watson.