The Market

UK Market Close to Bottom of Cycle

Business insurance rates in the United Kingdom look set to remain soft throughout 2008, but experts predict that the market is close to the bottom of the cycle.

Flood and windstorm losses last year failed to turn around the four year downward price trend in the United Kingdom. But commercial motor insurance rates at the January 1st renewal stabilised which, judging by past experience, suggests other business insurance lines could soon follow.

Household insurance and travel insurance rates were again lower at 1st January 2008. And while there may be scope for further price reductions in 2008, decreases in business insurance rates will be harder to achieve.

February 2008