Table of Contents
Executive Summary
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- The market
- Growth slows in 2018 following decade-high growth in 2017
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- Figure 1: The UK Market for Commercial Insurance, in GWPs, 2014-2018, (£ Million)
- Commercial property premiums account for over a quarter of market GWP value
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- Figure 2: UK Commercial Insurance Market, in GWP, by Insurance Type, 2014-2018, (£ Million)
- US represents largest commercial insurance market globally
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- Figure 3: The World’s 10 Largest Commercial Insurance Markets, in Direct Non-Life Insurance Premiums, 2017, (in $ Billion)
- Market growth expected to be driven by business uncertainty
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- Figure 4: The UK Market Forecast for Commercial Insurance, in Gross Written Premiums, 2019-2023, (£ Million)
- Companies and brands
- What we think
Issues and Insights
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- A rise in the number of cyber-attacks has driven demand for appropriate cover, although take-up remains somewhat low
- The facts
- The implications
- Recommended actions highlighted in the fight against commercial insurance fraud
- The facts
- The implications
The Market – What You Need to Know
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- Growth slows in 2018 following decade-high growth in 2017
- Market growth expected to be driven by businesses covering themselves against uncertainty
Market Size and Market Segmentation
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- Growth stalls slightly in 2018 following decade-high growth in 2017
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- Figure 5: The UK Market for Commercial Insurance, in Gross Written Premiums, 2014-2018, (£ Million)
- US represents the largest commercial insurance market in terms of written premiums
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- Figure 6: The World’s 10 Largest Commercial Insurance Markets, 2010 and 2017, (in $ Billion and % Share of Non-Life Market and GDP, respectively)
- Market Segmentation
- Commercial property premiums account for over a quarter of market GWP value
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- Figure 7: UK Commercial Insurance Market, in GWP, by Insurance Type, 2014-2018, (£ Million)
- Independent intermediaries collect over three-quarters of all commercial insurance lines
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- Figure 8: UK Commercial Lines General Insurance, by Distribution Channels, 2013-2017, (% of Total)
- US records largest non-life premium growth in 2017, but Spain records highest five-year growth average
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- Figure 9: Real Growth of Direct Premiums Written in Major Non-Life Insurance Markets, by Country and Region, 2013-2017, (%)
Market Forecast
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- Market growth expected to be driven by businesses covering against uncertainty
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- Figure 10: The UK Market Forecast for Commercial Insurance, in Gross Written Premiums, 2019-2023, (£ Million)
- Property insurance to continue to account for largest share of the market, whilst liability insurance will experience greatest growth
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- Figure 11: The UK Market Forecast for Commercial Insurance, by Type, 2019-2023, (£ Million)
- FCA launches study into the wholesale insurance brokers market
The Impact of the Economy
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- GDP growth rebounds in Q3 but challenges remain
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- Figure 12: GDP growth rate, Q3 2014 - Q3 2018, (% change on previous quarter)
Market Trends
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- Motor
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- Figure 13: UK Commercial Motor Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 14: UK Commercial Motor Insurance Market Segmentation, by Motor Insurance Type in GWP, 2013-2017, (£ Million)
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- Figure 15: UK Commercial Motor Insurance Market Operating Ratios, 2013-2017, (%)
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- Figure 16: UK Commercial Motor Insurance Business, by Distribution Channels, 2013-2017, (% of Total)
- Figure 17: Detected Claims Fraud in the UK Commercial Motor Insurance Market, in Value and Volume, 2014-2017, (in £000 and 000)
- Property
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- Figure 18: UK Commercial Property Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 19: UK Commercial Property Insurance Market Segmentation, by Type of Cover, in GWP, 2013-2017, (£ Million)
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- Figure 20: UK Commercial Property Insurance Market Operating Ratios, 2013-2017, (%)
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- Figure 21: Detected Claims Fraud in the UK Commercial Property Insurance Market, in Value and Volume, 2014-2017, (in £000 and 000)
- Liability
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- Figure 22: UK Liability Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 23: UK Liability Insurance Market Segmentation, by Liability Insurance Type in GWP, 2013-2017, (£ Million)
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- Figure 24: UK Liability Insurance Market Operating Ratios, Total and by Liability Insurance Type 2013-2017, (%)
- Private Medical Insurance
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- Figure 25: UK Corporate PMI Market Size, by Gross Earned Premiums, 2013-2017, (Premiums in £ Million, Average in £)
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- Figure 26: UK Corporate PMI Claims Paid and Gross Margin Development, 2013-2017, (Premiums and Claims in £ Million and Margins in %)
- Marine, Aviation and Transit (MAT)
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- Figure 27: UK MAT Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 28: UK Marine Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 29: UK Aviation Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 30: UK Transport Insurance Market Size, by Premiums, Outgoing Payments and Underwriting Result, 2013-2017, (£ Million)
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- Figure 31: UK MAT General Insurance, by Distribution Channels, 2013-2017, (% of Total)
- Trade Credit
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- Figure 32: UK Trade Credit Insurance Market Size, by Premiums and Share of Commercial Pecuniary Loss Market, 2013-2017, (£ Million and %)
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- Figure 33: UK Trade Credit Insurance Market, by Number of Policies and Insured Turnover Amount, 2013-2017, (in Units and £ Million)
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- Figure 34: UK Trade Credit Insurance, by Number of Claims and Gross Payments, 2013-2017, (Claim Number in Units and Gross Payments in £000)
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- Figure 35: UK Trade Credit Insurance Market Share of Premiums, by Market Segment, Customer Size and Insured Turnover and by Distribution Channels, 2013-2017, (%)
Market Drivers
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- Insurers prepare for a ‘no-deal’ Brexit with uncertainty remaining high
- IPT remains unchanged but insurers still wary of future hikes
- 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
Companies and Brands – What You Need to Know
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- Lloyd’s of London launches new digital platform to improve connectivity in the industry
- ‘Pay-as-you-go’ and cyber products target underinsured SME market
Industry Structure
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- Industry development
- Lloyd’s of London launches new digital platform to improve connectivity in the industry
- The industry is starting to adopt digital methods that will help improve the underwriting process…
- …which has also driven ‘insurtech’ activity
- Industry M&A activity
- The number of businesses operating in the industry rose in 2018, but growth in the number of outlets continues to stagnate
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- Figure 36: Analysis of the Changes in the Structure of the Non-Life Insurance Industry, 2014-2018, (Number of Outlets and Businesses)
- Structure by Employment
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- Figure 37: Analysis of the Employment Structure of the Non-Life Insurance Industry, 2017 and 2018, (Number of Employees and Outlets)
- Structure by Turnover
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- Figure 38: Analysis of the Financial Structure of the Non-life Insurance Industry, 2017 and 2018, (£000 and Number of Businesses)
Competitive Strategies
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- ‘Pay-as-you-go’ and cyber products target underinsured SME market
- London Market targets emerging regions
Company Profiles
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- Ageas
- Recent company activity
- Financial information
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- Figure 39: Financial Analysis of Ageas Insurance Limited, 2013-2017, (£ Million)
- AIG Europe Limited
- Recent company activity
- Financial information
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- Figure 40: Financial Analysis of AIG Europe Limited, 2013-2017, (£ Million)
- Allianz
- Recent company activity
- Financial information
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- Figure 41: Financial Analysis of Allianz Holdings, 2013-2017, (£ Million)
- AXA Insurance
- Recent company activity
- Financial information
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- Figure 42: Financial Analysis of AXA Insurance UK, 2013-2017, (£ Million)
- Hiscox
- Recent company activity
- Financial information
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- Figure 43: Financial Analysis of Hiscox, 2013-2017, (£ Million)
- QBE Insurance (Europe)
- Recent company activity
- Financial information
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- Figure 44: Financial Analysis of QBE Insurance (Europe), 2013-2017, (£ Million)
- RSA Group
- Recent company activity
- Financial information
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- Figure 45: Financial Analysis of RSA Group, 2013-2017, (£ 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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