Income slumps as Zurich hikes rates

Zurich’s UK revenues have been hit by its decision to push up motor rates by 20%, with premium income down £200m in the first nine months of this year compared with the same period last year.

Zurich’s premium income fell to $2.11bn (£1.31bn), compared with $2.32bn last year, its third-quarter results revealed. The decision to raise motor rates has led to brokers reducing their accounts with Zurich, moving business to other insurers. Insurance Times understands the account with Swinton has been reduced dramatically.

Zurich does not give third-quarter details of its UK account, but the consolidated accounts stated: “Lower volumes were driven by a continued decline in insured customer exposure as a result of depressed levels of economic activity, a competitive market environment, as well as the Group’s continued disciplined approach to underwriting.”