UK motor insurers make underwriting loss in 2015 -survey

(Corrects spelling of James Rakow in paragraphs three and eight)

LONDON, May 25 (Reuters) - UK motor insurers made an underwriting loss in 2015 and that loss is likely to deepen this year as higher insurance taxes encourage drivers to shop around for the cheapest deal, a survey from consultancy Deloitte said on Wednesday.

Insurance premium tax rose last year by 3.5 percentage points to 9.5 percent, and has risen again this year, to 10 percent. Insurers generally pass the tax onto consumers, analysts say.

"Large rate increases and changes to insurance premium tax have meant many consumers' pockets have suffered," said James Rakow, insurance partner at Deloitte.

"Insurers will need to work harder to tailor products and premiums to individual needs."

The net combined ratio for the sector was 102 percent in 2015, Deloitte said, meaning 102 pounds was spent on claims and expenses for every 100 pounds of premium received.

Deloitte forecast the net combined ratio could rise to 104 percent this year, dropping back to 102 percent in 2017.

Major UK motor insurers include Admiral and Direct Line.

Motor insurers have relied on tapping into reserves, investment returns or add-on services such as legal assistance to boost profits, Rakow said.

The value of insurance premiums rose 5 percent last year to a total of 13.7 billion pounds ($19.90 billion), the survey said. ($1 = 0.6883 pounds) (Reporting by Carolyn Cohn, editing by David Evans)