South African financial services organisation Discovery Limited is exiting Britain’s car insurance market.
In the UK, Discovery currently operates in the life, health, and car insurance sectors. This is set to change in the middle of 2024, as reported by BusinessDay.
“The UK car insurance market has experienced unprecedented claims inflation, leading to significant price increases which our underwriter has had to pass on to our VitalityCar members,” Discovery said in its integrated annual report for the year ended June 30, 2023.
“These increases have materially impacted our ability to deliver value for good drivers, and has led to the decision to not offer members cover beyond their current plan year and run off the book. This has resulted in an accelerated write-off of the business’s capitalised systems and intangible assets.”
According to Discovery, the move has led to a pre-tax loss of £8.8 million.
A joint venture with Covéa Insurance, Discovery’s VitalityCar business in the UK will be run off by June 30 next year.
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