View this article online: https://www.claimsjournal.com/news/international/2006/02/07/65134.htm
Research and Markets(http://www.researchandmarkets.com/reports/c32430) reported the addition of UK Motorcycle Insurance 2005 to their offering.
The motorcycle market experienced tougher market conditions in 2004 and 2005, as increased competition put pressure on rates and led to a reduction in GWP. This report examines the reasons for this decline, as well many other issues at the forefront of motorcycle insurance in 2005.
This report provides an analysis of market size and trends in new bike registrations. It includes data on GEP and gross claims ratio by competitor. Unique forecasts of motorcycle insurance GWP up until 2010 are also included.
The motorcycle insurance market was worth GBP 144 million in 2004, a decrease of 5.9 per cent. This fall was caused by increased competitive pressure, due in part to a spill-over effect from the soft market conditions and reduced profitability of private motor, which led some underwriters to target more profitable niche markets such as motorcycle.
The weighted average claims costs of the main motorcycle insurers improved in 2004. This improvement was largely a result of companies scaling back their exposure to the motorcycle sector as a reaction to the tough market conditions. Norwich Union, Highway, CIS and Royal & SunAlliance all saw improved their profitability following such a strategy.
Industry executives expect to see slight rate improvements in 2006, and expect increases to be more substantial in 2007 and 2008. Consequently, GWP growth is expected to be low in 2006, but forecast to pick up in 2007.
Companies mentioned in the report include:
Kwik-Fit
EBike
Bennetts
Insure
Norwich Union
Highway
CIS
Royal & SunAlliance.