The UK motor insurance market is projected to post a net combined ratio of 108% in 2026, a sharp deterioration from the 102% EY estimates for 2025, with losses continuing into 2027 at a forecast 103%, according to analysis the firm released July 23.
Repair, labor and vehicle costs are the primary drag on margins that insurers are now moving to recover through pricing, with premiums forecast to rise 16% over the next two years. Insurers absorbing a second and third consecutive year of underwriting losses have a direct incentive to tighten scrutiny of repair spend, and UK collision repairers
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