Table of Contents
Executive Summary
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- COVID-19 and B2B insurance
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- Figure 1: Expected impact of COVID-19 on B2B insurance, short, medium, and long term, 25 January 2021
- The market
- Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
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- Figure 2: The UK commercial insurance market, in GWPs, 2016-2020, (£ million)
- Liability GWPs record 27% growth since 2016
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- Figure 3: UK commercial insurance market, in GWP, by insurance type, 2020, (£ million)
- US strengthens its dominant position in the global non-life insurance market
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- Figure 4: The world’s six largest commercial insurance markets, in direct non-life insurance premiums, 2019, ($ billion)
- Hardening market and premium pricing to drive growth in post-pandemic world
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- Figure 5: The UK market forecast for commercial insurance, in gross written premiums, 2021-25, (£ million)
Issues and Insights
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- Supreme Court decision on COVID business interruption claims could hit the industry hard
- SMEs remain underinsured with inadequate online presence adding another barrier to gaining insurance cover
The Market – Key Takeaways
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- Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
- Liability GWPs record 27% growth since 2016
- Hardening market and premium pricing to drive growth in post-pandemic world
Market Size and Market Segmentation
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- Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
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- Figure 6: The UK market for commercial insurance, in gross written premiums, 2016-20, (£ million)
- US strengthens its dominant position in the global commercial insurance market
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- Figure 7: The world’s 10 largest commercial insurance markets, 2010 and 2019, (in $ billion and % share of non-life market and GDP, respectively)
- Market Segmentation
- Liability GWPs record 27% growth since 2016
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- Figure 8: UK commercial insurance market, in GWP, by insurance type, 2016-20, (£ million)
- Independent intermediaries collect 78% of all commercial insurance lines
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- Figure 9: UK commercial lines general insurance, by distribution channels, 2015-19, (% of total)
- Canada records strongest non-life premium growth in 2019 and has the strongest five-year growth average
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- Figure 10: Real growth of direct premiums written in major non-life insurance markets, by country and region, 2015-19, (%)
Market Forecast
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- Short-, medium- and long-term impact on the industry
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- Figure 11: Expected impact of COVID-19 on B2B Insurance, short, medium, and long term, 25 January 2021
- Market drivers and assumptions
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- Figure 12: Key drivers affecting Mintel’s market forecast, 2015-2025, (in % annual change and annual average % rate) - (prepared on 21 January 2021)
- Learnings from the last recession
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- Figure 13: Industry performance following the last recession, 2008-2014, (£ million)
- Market overview
- Hardening market and premium pricing to drive growth as businesses seek survival and then growth in a post-pandemic world
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- Figure 14: The UK market forecast for commercial insurance, in gross written premiums, 2021-25, (£ million)
- Property insurance will account for highest market value, but motor insurance will experience greatest growth as it rebounds after pandemic inactivity
- Motor
- Liability
- Health insurance
- MAT
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- Figure 15: The UK market forecast for commercial insurance, by type, 2021-25, (£ million)
- Mactavish calls for industry reform
- Lloyd’s of London to conduct insurance products review
The Impact of the Economy
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- Annual GDP growth falls to decade low in 2019 and will decline in 2020 due to COVID-driven economic shutdowns
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- Figure 16: Annual GDP growth rate, 2016 – 2020*, (Annual % change)
Market Trends
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- Motor
- Impact of Brexit on motor industry
- Trends in the commercial motor insurance market
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- Figure 17: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 18: UK commercial motor insurance market segmentation, by motor insurance type in GWP, 2015-19, (£ million)
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- Figure 19: UK commercial motor insurance market operating ratios, 2015-19, (%)
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- Figure 20: Detected claims fraud in the UK commercial motor insurance market, in value and volume, 2015-19, (in £000 and 000)
- Property
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- Figure 21: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 22: UK commercial property insurance market segmentation, by type of cover, in GWP, 2015-19, (£ million)
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- Figure 23: UK commercial property insurance market operating ratios, 2015-19, (%)
- Figure 24: Detected claims fraud in the UK commercial property insurance market, in value and volume, 2015-19, (in £000 and 000)
- Liability
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- Figure 25: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 26: UK liability insurance market segmentation, by liability insurance type in GWP, 2015-19, (£ million)
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- Figure 27: UK liability insurance market operating ratios, total and by liability insurance type 2015-19, (%)
- Private medical insurance
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- Figure 28: UK corporate PMI market size, by gross earned premiums, 2015-19, (premiums in £ million, average in £)
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- Figure 29: UK corporate PMI claims paid and gross margin development, 2015-19, (premiums and claims in £ million and margins in %)
- Marine, aviation and transit
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- Figure 30: UK MAT insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 31: UK marine insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 32: UK aviation insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
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- Figure 33: UK transport insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
- Trade credit
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- Figure 34: UK trade credit insurance market size, by premiums and share of commercial pecuniary loss market, 2015-19, (£ million and %)
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- Figure 35: UK trade credit insurance market, by number of policies and insured turnover amount, 2015-19, (in units and £ million)
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- Figure 36: UK trade credit insurance, by number of claims and gross payments, 2015-19, (claim number in units and gross payments in £000)
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- Figure 37: UK trade credit insurance market share of premiums, by market segment, customer size and insured turnover and by distribution channels, 2015-19, (%)
Market Drivers
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- Brexit is complete and insurers must now adapt to the new operating environment
- Consultation held on IPT to improve tax administration and prevent bad outcomes, but rate remains unchanged
- Regulation
- The Marine Insurance Act 1906
- The Insurance Act
- The Enterprise Bill/Enterprise Act
- The Third Parties (Rights Against Insurers) Act
- EU Regulations
- Solvency II
- Regulatory Bodies
- Prudential Regulation Authority
- The IFRS 17
Companies and Brands – Key Takeaways
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- Lloyd’s of London launches 2021 transformation plan
- Insurers launch new broker platforms
Industry Structure
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- Industry development
- Lloyd’s of London launches 2021 transformation plan
- Peach Pi launches industry collaborative advisory forum
- The FCA sets priorities for commercial and personal insurance sector
- Industry M&A activity
- The number of businesses operating in the industry continues to rise, whilst the number of outlets declines
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- Figure 38: Analysis of the changes in the structure of the non-life insurance industry, 2016-20, (number of outlets and businesses)
- Structure by employment
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- Figure 39: Analysis of the employment structure of the non-life insurance industry, 2019 and 2020, (number of employees and outlets)
- Structure by turnover
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- Figure 40: Analysis of the financial structure of the non-life insurance industry, 2019 and 2020, (£000 and number of businesses)
Competitive Strategies
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- Gresham launches Professional Select to help brokers
- Insurers launch new broker platforms
- Allianz launches digital claims hub and app with live chat functionality
Company Profiles
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- Ageas
- Recent company activity
- Financial information
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- Figure 41: Financial analysis of Ageas Insurance Limited, 2015-19, (£ million)
- AIG UK Limited
- Recent company activity
- Financial information
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- Figure 42: Financial analysis of AIG UK Limited, 2019, (£ million)
- Allianz
- Recent company activity
- Financial information
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- Figure 43: Financial analysis of Allianz Holdings, 2015-19, (£ million)
- AXA Insurance
- Recent company activity
- Financial information
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- Figure 44: Financial analysis of AXA, 2015-19, (£ million)
- Hiscox
- Recent company activity
- Financial information
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- Figure 45: Financial analysis of Hiscox, 2015-19, (£ million)
- QBE UK Limited
- Recent company activity
- Financial information
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- Figure 46: Financial analysis of QBE UK Limited, 2015-19, (£ million)
- RSA Group
- Recent company activity
- Financial information
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- Figure 47: Financial analysis of RSA Group, 2015-19, (£ million)
Appendix - Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade Associations
- Trade Magazines
- Trade Exhibitions
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