Motor insurance operating profit margin UK 2013-18
Motor insurance provides financial protection in case of property or persons damage caused by the owner or driver of the vehicle. There are three main types of motor insurance in the United Kingdom – third party, third party, fire and theft, and comprehensive. Operating profit margin indicates the profitability of a company or a sector and is calculated as the ratio of the operating profit to the total revenue.
Profit of the motor insurance sector
From 2013 to 2018, the operating profit margin of motor insurers in the United Kingdom (UK) fluctuated between seven and 16 percent. After a several-year-period of the industry registering net annual underwriting losses, 2017 and 2018 ended with a net underwriting profit.
The motor insurance sector in the UK is a competitive one
The UK has the highest number of motor insurance companies operating on the domestic market in Europe, with as many as France, Germany and Italy combined. There are multiple channels for obtaining motor insurance and many different products to choose from. In 2018, the companies with the highest operating profit margin on the motor insurance market in the UK were motor insurance price comparison websites. More in-depth information on the topic can be found in the Statista dossier on motor insurance in the UK.