The UK’s biggest car insurers – 3 share ideas with potential

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It’s been a tricky time for the UK motor insurance sector since people returned to the roads. Here are 3 share ideas that might present an opportunity.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

12 October 2023

It’s been a tricky time for the UK motor insurance sector. As economies came out of the pandemic and people returned to the road, the level of claims started to tick higher. Add in rampant inflation that pushed the costs to service claims up, this was a recipe for unprofitable business.

Higher premiums were the obvious answer. But with most people buying annual policies, it still takes time for price hikes to feed through to operating performance.

Source: Office for National Statistics – CPI Index Motor vehicle insurance (August 2023).

The good news is that the benefits of some mammoth price hikes are now starting to show. At the same time, we’re hearing costs are stabilising, which is more positive than it has been over the past