Profits are negative at the moment (at the market level - there are some companies who are able to underwrite profitably and offer a decent service.)
From memory in 2011 the market lost 10% on premium*, and in 2012 it clawed its way back to losing only about 3%. Then in 2013 law reforms came in which began to take some of the frictional costs out of the system (mainly by forcing lawyers to be more efficient on simple claims) which industry experts reckon will save about 5% on the cost of premiums. The market responded... by cutting rates by 15%, so I'm expecting a 2013 loss back up to 10% or so, and the same for 2014. Rates are just about beginning to stabilise, so that's probably another 10% loss in 2015 and perhaps a smaller loss in 2016.
*i.e for every £100 of motor premium, insurers made a loss of £10.
. She only told me after she had had it installed. It was perfectly OK and half the age of my boiler. When I asked why she had done it one of the reasons was "it would give a better flow". She doesn't even own a bath and the shower is electric.
