Smaller companies are being squeezed out of the market. Losses may well start to fall during 2000 and beyond, but the sector is unlikely to be hugely profitable for the next few years. After motor insurance, this sector has become the most competitive and, unlike the motor sector, the most unpredictable. Flooding and storm damage claims are rising in value and becoming more frequent, but their incidence remains impossible to forecast. The insurers are seeking to expand this market by offering healthcare management services to corporate buyers.
Pecuniary loss includes business interruption, mortgage payment protection and credit insurance.
Credit insurance not only includes non-payment, but late payment and late delivery. Hence, this is quite a complex market and it is becoming progressively more important. However, in the long-term it is unlikely that these levels of profits will continue. Like the property insurance sector, this sector is extremely unpredictable. This part of the market covers a wide range of insurance risks.