The tangled web of insurance

Industry is plagued by uncertainty, prompting concern about its long-term problems

Insurers are fighting fires on multiple fronts: pressure from government over spiralling motor insurance costs; controversy over the provision of insurance cover for homes and businesses at risk of flooding; concerns over rising claims costs, and uncertainty over a court ruling that could put further pressure on pricing.

All these challenges, coupled with the hangover from an era of unsustainably low pricing on foot of aggressive competition for market share, means that the ...