Private motor insurance GWP continued to decline in 2013. Insurance premiums also continued to fall, due to overcapacity and the resulting high competition in the market. There have been reports of players reducing their books to limit exposure but this seems to have been met with increased appetite from others, and there is no indication of a decrease in market capacity in the near future.
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How did the market perform in 2013, and how is it expected to perform in the coming years?
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Private motor insurance GWP continued to decline in 2013, shrinking by 4.8% to 10.8bn. Insurance premiums also continued to fall in Q1 2014, due to overcapacity and the resulting high level of competition in the market.
However, interviews with industry experts suggest that rates may be starting to harden in Q2 2014 in response to claims inflation, which is likely to drive a return to gradual growth in the market over the next few years.
In 2013 the private motor insurance market combined operating ratio (COR) saw its lowest level in years, falling from 108.2% in 2012 to 100.5%.