Insurance has become a major challenge for the motorcycle industry in the UK, both in terms of rising premiums and, in some cases, availability – particularly in certain areas and for specific vehicle types, such as electric models. Following the demise of MCE Insurance in 2023 and AXA’s withdrawal from the market in early 2024, a market vacuum was created, not dissimilar to the situation when Norwich Union withdrew more than 20 years ago.
In response to the issue, MCIA convened a meeting in late 2024 with the remaining major underwriters, the OEMs and MCIA manufacturer board members. The aim was to understand what, if anything, the industry could do to help stifle the rise in premiums. It was also an opportunity to better understand, from an underwriter’s perspective, why the market had become so challenging and unattractive to new insurers, particularly given that two major players had either folded or withdrawn.
The meeting was held under Chatham House Rules to encourage underwriters to speak freely and openly, which was essential if we were to learn anything meaningful from the discussion.
Whilst I cannot disclose who said what, there was some interesting information and facts shared in the meeting from all sides.
Firstly, I would like to say that the underwriters who attended and those who have continued to engage with us were extremely open and willing to respond to our questions and challenges. They were also prepared to explain the impact that MC Edwards (MCE Insurance) had on the market whilst they were trading, which eventually led to the inevitable failure.
One of the clearest messages was that insurance premiums cannot be explained solely by theft or vehicle damage. Underwriters highlighted the potentially very high cost of serious third-party bodily injury claims, which have substantially increased in recent years.
Under UK law, insurers are required to provide “unlimited liability” in cases involving injury or death, including third-party claims. This contrasts with some European countries, where unlimited liability does not apply in the same way. However, with an increase in these types of claims, the insurers are now having to factor this in when setting premiums. At the meeting, a real-world example was shared, which had an enormous impact on underwriters’ profits and nearly led to an exit from our market.
Motorcycle theft nevertheless remains a serious concern. Figures shared during the meeting suggested that theft accounted for approximately 14% of the cost of claims among the insurers represented. This does not diminish the significant impact of theft on individual riders, retailers or the wider industry. It does, however, illustrate the particularly substantial effect that severe injury claims can have on overall insurance costs.
The motorcycle sector has invested considerably in improving vehicle security, including the original “Masterscheme”; this was replaced by MCIA Secured, which included a much wider range of security features. We must also recognise the efforts that are being made by the retailers and riders, where trackers and all other forms of security are being used, have increased.
Monitoring the rates of theft over the last five years, it is evident that our joint efforts are having an effect, with a year-on-year reduction in motorcycle theft, dropping from an average yearly rate of 28,000 to just over 21,000 in 2025. MCIA will continue working with its members and partners to ensure that theft interventions and measures are properly understood and recognised by consumers through the MCIA Secured initiative.
The insurers also raised the issue of insurance “add-ons”, which have led to a significant rise in claims costs (accident management, replacement vehicles and prolonged storage). These can have a major impact on the total cost of a claim and, in some cases, encourage the insurer to write off the vehicle as it could be the cheaper option.
Finally, the other area we are working on is improving the vehicle data that forms the basis of the ABI code. Currently, this is quite limited and has potentially negatively influenced premiums, as the underwriter can only see a limited amount of data when rating a vehicle. MCIA are currently working with Thatcham to provide a full vehicle dataset at the same time as the DVLA (MCRIS) code is created by us. This will provide far more detail on the vehicle ABI record, allowing the underwriter to have all the information about the vehicle (when new).
Be assured, MCIA continue to work with the insurance sector and will raise the issue of unlimited liability with the government (although it is unlikely this can be changed in law). We are also continuing to work with the Association of British Insurers to see what efforts we can make to try to encourage more players to the market.
Tony Campbell
CEO, MCIA