UK motor changes to spark 12% price hike

Forthcoming regulatory changes and claims inflation in the UK motor
market will cause price increases of about 12 percent in 2017,
according to Bernstein analyst Thomas Seidl.
In a note released today Seidl predicted the increases would
result in a 5 percentage point improvement in attritional loss
ratios.
But he noted that claims inflation and insurance premium tax
would consume 7 percent and 5 percent, respectively, of real margin
improvement.
The analyst said the market needed real margin inc