Table of Contents
Executive Summary
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- Market size
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- Figure 1: The UK market for commercial insurance, in gross written premiums, 2013-17, (£ million)
- Figure 2: UK commercial insurance market, in GWP, by insurance type, 2013 and 2017, (% share of overall market)
- Market trends
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- Figure 3: UK commercial lines general insurance, by distribution channels, 2012-16, (% of total)
- Figure 4: Real growth of direct premiums written in major non-life insurance markets, by country, 2012-16, five-year average growth rate, (%)
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- Figure 5: UK commercial property insurance market size, by premiums, 2012-16, (£ million)
- Market factors
- Insurers seek opportunities from a post-Brexit environment, but remain alert on potential operational changes
- High IPT rate could be affecting uptake levels after a fourth rise in three years
- Companies
- Forecast
- Market growth expected to be driven by the uncertain business environment and the emergence of new players
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- Figure 6: UK market forecast for commercial insurance, in gwp, 2018-22, (£ million)
- What we think
Key Insights
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- How is investment into new technology processes affecting industry operations?
- How can changes to the way B2B claims are paid improve efficiency and customer relationships?
Introduction
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- Definitions
- Methodology
- Abbreviations
- Market positioning
UK Economy
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- Key points
- Overview
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- Figure 7: Forecast GDP development 2017-21, (% annual growth)
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- Figure 8: UK GDP quarterly development, 2007-17, (% quarterly growth and gdp in £ billion)
- Inflation
- Interest rates
- House prices
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- Figure 9: UK house price changes, 2006-17, (12 month % change)
- Consumer spending
- Manufacturing
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- Figure 10: UK manufacturing, 2014-17, (Index, 2013 = 100)
- Business investment
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- Figure 11: UK GFCF, 2007-17, (£ million, chained volume measures, seasonally adjusted)
- Imports
- Exports
Market Factors
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- Key points
- Insurers seek opportunities from a post-Brexit environment, but remain alert on potential operational changes
- Despite a slight rise in the base interest rate, insurers’ profits are still under pressure and affecting premiums
- High IPT rate could be affecting uptake levels after fourth rise in three years
- 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
- The Insurance Distribution Directive (IDD)
- Prudential Regulation Authority
- The IFRS 17
Market Size and Market Segmentation
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- Key points
- Market size
- Slow growth improvements seen in commercial insurance GWP since 2015
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- Figure 12: The UK market for commercial insurance, in gross written premiums, 2013-17, (£ million)
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- Figure 13: The UK market for commercial insurance, in gross written premiums, 2013-17, (£ million)
- US retains position as largest commercial insurance market
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- Figure 14: The world’s 10 largest commercial insurance markets, 2010 and 2016, (in $ billion and % share of non-life market and GDP, respectively)
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- Figure 15: The world’s 10 largest commercial insurance markets, 2016, ($ billion and % share)
- London Market Resilience Tests
- Market segmentation
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- Figure 16: UK commercial insurance market, in GWP, by insurance type, 2013-17, (£ million)
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- Figure 17: UK commercial insurance market, in GWP, by insurance type, 2013 and 2017, (% share of overall market)
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- Figure 18: UK commercial lines general insurance, by distribution channels, 2012-16, (% of total)
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- Figure 19: UK commercial lines general insurance, by distribution channels, 2012-16, (% of total)
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- Figure 20: Real growth of direct premiums written in major non-life insurance markets, by country and region, 2012-16, (%)
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- Figure 21: Real growth of direct premiums written in major non-life insurance markets, by country, 2012-16, five-year average growth rate, (%)
Market Trends
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- Key points
- Motor
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- Figure 22: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 23: UK commercial motor insurance market size, by premiums, 2012-16, (£ million)
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- Figure 24: UK commercial motor insurance market segmentation, by motor insurance type in GWP, 2012-16, (£ million)
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- Figure 25: Segmentation of UK commercial motor insurance, by motor insurance type in gwp, 2012 and 2016, (% share)
- Table 26: UK commercial motor insurance market operating ratios, 2012-16, (%)
- Property
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- Figure 27: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 28: UK commercial property insurance market size, by premiums, 2012-16, (£ million)
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- Figure 29: UK commercial property insurance market segmentation, by type of cover, in gwp, 2012-16, (£ million)
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- Figure 30: Segmentation of UK commercial property insurance, by type in gwp, 2012 and 2016, (% share)
- Figure 31: UK commercial property insurance market operating ratios, 2012-16, (%)
- Liability
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- Figure 32: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 33: UK liability insurance market size, by premiums, 2012-16, (£ million)
- Figure 34: UK liability insurance market segmentation, by liability insurance type in gwp, 2012-16, (£ million)
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- Figure 35: Segmentation of UK liability insurance market, by type in GWP, 2012 and 2016, (% share)
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- Figure 36: UK liability insurance market operating ratios, total and by liability insurance type 2012-16, (%)
- Private Medical Insurance
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- Figure 37: UK corporate PMI market size, by gross earned premiums, 2012-16, (premiums in £ million, average in £)
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- Figure 38: UK corporate PMI market size, by gross earned premiums and average annual premium per subscriber, 2012-16, (£ million and average in £)
- Figure 39: UK corporate PMI claims paid and gross margin development, 2012-16, (premiums and claims in £ million and margins in %)
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- Figure 40: UK corporate PMI claims paid and gross margin development, 2012-16, (premiums and claims in £ million and margins in %)
- Marine, Aviation and Transit (MAT)
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- Figure 41: UK MAT insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 42: UK MAT insurance market size, by premiums, 2012-16, (£ million)
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- Figure 43: UK marine insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 44: UK aviation insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 45: UK transport insurance market size, by premiums, outgoing payments and underwriting result, 2012-16, (£ million)
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- Figure 46: UK MAT general insurance, by distribution channels, 2012-16, (% of total)
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- Figure 47: UK MAT general insurance, by distribution channels, 2012-16, (% of total)
- Trade credit
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- Figure 48: UK trade credit insurance market size, by premiums and share of commercial pecuniary loss market, 2012-16, (£ million and %)
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- Figure 49: UK trade credit insurance market size, by GWP and share of commercial pecuniary loss market, 2012-16, (£ million and %)
- Figure 50: UK trade credit insurance market, by number of policies and insured turnover amount, 2012-16, (in units and £ million)
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- Figure 51: UK trade credit insurance market, by number of policies and insured turnover amount, 2012-16, (in units and £ million)
- Figure 52: UK trade credit insurance, by number of claims and gross payments, 2012-16, (claim number in units and gross payments in £000)
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- Figure 53: UK trade credit insurance market share of premiums, by market segment, customer size and insured turnover and by distribution channels, 2012-16, (%)
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- Figure 54: Share of trade credit premiums, by segmentation, 2012 and 2016, (%)
Industry Structure
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- Key points
- Industry development
- Digital transformation and the rise of ‘insurtech’ occurring in the industry
- New wave of industry consolidation
- FCA launches study into the wholesale insurance brokers market
- The number of businesses operating in the industry increased in 2017, but there was slightly lower growth in number of outlets
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- Figure 55: Analysis of the changes in the structure of the non-life insurance industry, 2013-17, (number of outlets and businesses)
- Structure by employment
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- Figure 56: Analysis of the employment structure of the non-life insurance industry, 2016 and 17, (number of employees and outlets)
- Structure by turnover
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- Figure 57: Analysis of the financial structure of the non-life insurance industry, 2016 and 2017, (£000 and number of businesses)
Company Profiles
Ageas
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- Figure 58: Financial analysis of Ageas insurance limited, 2012-16, (£ million)
- Company strategy
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AIG Europe Limited (formerly Chartis Europe Limited)
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- Figure 59: Financial analysis of AIG Europe limited, 2012-16, (£ million)
- Company strategy
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Allianz
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- Figure 60: Financial analysis of Allianz Holdings, 2012-16, (£ million)
- Company strategy
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Aviva
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- Figure 61: Financial analysis of Aviva plc, 2012-16, (£ million)
- Company strategy
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AXA Insurance
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- Figure 62: Financial analysis of AXA Insurance UK, 2012-16, (£ million)
- Company strategy
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Hiscox
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- Figure 63: Financial analysis of Hiscox, 2012-16, (£ million)
- Company strategy
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LV Insurance
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- Figure 64: Financial analysis of Liverpool Victoria Insurance Company Limited, 2012-16, (£ million)
- Company strategy
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QBE Insurance (Europe)
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- Figure 65: Financial analysis of QBE Insurance (Europe), 2012-16, (£ million)
- Company strategy
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RSA Group
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- Figure 66: Financial analysis of RSA Group, 2012-16, (£ million)
- Company strategy
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- Figure 67: Profiled companies’ combined GWP, 2012-16, (£ million)
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Forecast
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- Key points
- Market size and segmentation
- Market growth expected to be driven by the uncertain business environment and the emergence of new players
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- Figure 68: The UK market forecast for commercial insurance, in gross written premiums, 2018-22, (£ million)
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- Figure 69: UK market forecast for commercial insurance, in GWP, 2018-22, (£ million)
- Property insurance accounts for the largest proportion of the market
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- Figure 70: The UK market forecast for commercial insurance, by type, 2018-22, (£ million)
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- Figure 71: The UK market forecast for commercial insurance, by type, 2018-22, (% share)
- Industry
- London Market must rise to meet threat posed by competition
- Industry remains hopeful of a further change to the Ogden Rate
- Recent global cyber attacks have driven demand for cyber insurance
Further Sources and Contacts
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- Trade associations
- Association of Insurance and Risk Managers (Airmic)
- Association of British Insurers (ABI)
- British Insurance Brokers’ Association (BIBA)
- Chartered Insurance Institute (CII)
- Financial Conduct Authority (FCA)
- International Underwriting Association of London (IUA)
- London & International Insurance Brokers’ Association (LIIBA)
- Trade magazines
- Continuity Insurance & Risk (Bimonthly)
- Insurance Age (Monthly)
- Insurance Times (Monthly)
- Post Magazine & Insurance Week (Weekly)
- The Insurance Insider (Monthly)
- Trade exhibitions
- BIBA 2018
- Digital Insurance World 2018
- Cyber Insurer & Broker Assembly 2018
- Insurance Innovators Motor 2018
- UK Broker Summit 2018
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