...Resilient Performance in a Challenging Environment Fitch Ratings expects operating conditions within the UK company market to be stable in 2016. The sector is expected to report strong results in spite of competitive pressures and persistently low yields. It is likely that the current direction of motor premiums could change, with recent price rises slowing, as the effects of the new measures to tackle whiplash claims, announced in the government's 2015 Autumn Statement, are realised. The current rises are partly due to insurers responding to an increase in claims costs. We also viewed price rises as necessary as the sizes of reserve releases in the last few years were becoming unsustainable for the sector. The introduction of Solvency II on 1 January 2016 is expected to result in limited changes to the capital positions of most major UK company market insurers, due to their already strong levels of capitalisation. What to Watch Ongoing Reforms in Motor: A new set of measures to tackle...
