Tesco’s motor policies decline after regulatory changes
New rules on renewal transparency hit Tesco’s insurance motor business over the past year, with a 4.1% decline in the number of in-force policies.
Overall in-force policies were flat over the year, with the decline in motor offset by a 7.3% increase in home policies.
Tesco Personal Finance business reported insurance income down 7.3% for the year to 28 February, which it said was “mainly as a result of falling Motor retention rates which has, in part, been impacted by the new Renewal Transparency regulation”.
“Motor insurance continues to be a highly competitive market and has been impacted by regulatory change,” the company said. Tesco owns 49.9% of the Tesco Underwriting joint venture with its partner, Ageas.
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