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B2B Insurance - UK - January 2017

EXECUTIVE SUMMARY
Market size
Figure 1: The UK market for commercial insurance, in gross written premiums, 2012-16, (£ million)
Figure 2: UK commercial insurance market, in GWP, by insurance type, 2012 and 2016, (% share of overall market)
Market trends
Figure 3: UK commercial lines general insurance, by distribution channels, 2011-15, (% of total)
Figure 4: Real growth of direct premiums written in major non-life insurance markets, by country, 2012-16, (%)
Figure 5: UK commercial property insurance market size, by premiums, 2011-15, (£ million)
Figure 6: UK liability insurance market size, by premiums, 2011-15, (£ million)
Figure 7: UK MAT insurance market size, by premiums, 2011-15, (£ million)
Market factors
The global position of the UK and London could be challenged by Brexit
Third IPT rise in less than two years bemoaned by industry
Broker commission transparency representing a challenge to industry reputation
Companies
Forecast
Low, but stable, growth expected in the market
Figure 8: UK market forecast for commercial insurance, in GWP, 2017-21, (£ million)
Growing use of technology must be embraced by traditional insurers to retain market share
What we think
KEY INSIGHTS
What could Brexit mean for the industry?
Do traditional insurers need to embrace the growing use of technology to retain market share?
What are the industry’s growth prospects looking forward?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY 
Key points
Overview
Figure 9: UK GDP, 2006-16, (% quarterly growth and GDP in £ billion)
Figure 10: UK output, by industry, 2008-16, (index 2013 = 100)
Figure 11: Quarters after GDP peak, 1979, 1990 and 2008, (number of quarters and GDP as % of pre-downturn peak)
Inflation
Interest rates
House prices
Figure 12: UK house price changes, 2006-16, (12-month % change)
Consumer spending
Manufacturing
Figure 13: UK manufacturing, 2014-16, (Index, 2013 = 100)
Business investment
Figure 14: UK GFCF 2005-15, (£ million)
Imports
Exports
MARKET FACTORS
Key points
The global position of the UK and London could be challenged by Brexit
Third IPT rise in less than two years bemoaned by industry
Broker commission transparency represents a challenge to industry reputation
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
MARKET SIZE AND MARKET SEGMENTATION
Key points
Market size
Stable growth in commercial insurance GWP
Figure 15: The UK market for commercial insurance, in gross written premiums, 2012-16, (£ million)
Figure 16: The UK market for commercial insurance, in gross written premiums, 2012-16, (£ million)
US retains position as largest commercial insurance market
Figure 17: The world’s 10 largest commercial insurance markets, 2010 and 2015, (in $ billion and % share of non-life market and GDP, respectively)
Figure 18: The world’s 10 largest commercial insurance markets, 2015, ($ billion and % share)
Market segmentation
Figure 19: UK commercial insurance market, in GWP, by insurance type, 2012-16, (£ million)
Figure 20: UK commercial insurance market, in GWP, by insurance type, 2012 and 2016, (% share of overall market)
Figure 21: UK commercial lines general insurance, by distribution channels, 2011-15, (% of total)
Figure 22: UK commercial lines general insurance, by distribution channels, 2011-15, (% of total)
Figure 23: Real growth of direct premiums written in major non-life insurance markets, by country and region, 2012-16, (%)
Figure 24: Real growth of direct premiums written in major non-life insurance markets, by country, 2012-16, five-year average growth rate, (%)
MARKET TRENDS
Key points
Motor
Figure 25: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 26: UK commercial motor insurance market size, by premiums, 2011-15, (£ million)
Figure 27: UK commercial motor insurance market segmentation, by motor insurance type in GWP, 2011-15, (£ million)
Figure 28: Segmentation of UK commercial motor insurance, by motor insurance type in GWP, 2011 and 2015, (% share)
Figure 29: UK commercial motor insurance market operating ratios, 2011-15, (%)
Property
Figure 30: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 31: UK commercial property insurance market size, by premiums, 2011-15, (£ million)
Figure 32: UK commercial property insurance market segmentation, by type of cover, in GWP, 2011-2015, (£ million)
Figure 33: Segmentation of UK commercial property insurance, by type in GWP, 2011 and 2015, (% share)
Figure 34: UK commercial property insurance market operating ratios, 2011-15, (%)
Liability
Figure 35: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 36: UK liability insurance market size, by premiums, 2011-15, (£ million)
Figure 37: UK liability insurance market segmentation, by liability insurance type in GWP, 2011-15, (£ million)
Figure 38: Segmentation of UK liability insurance market, by type in GWP, 2011 and 2015, (% share)
Figure 39: UK liability insurance market operating ratios, total and by liability insurance type 2011-15, (%)
Private Medical Insurance
Figure 40: UK corporate PMI market size, by gross earned premiums, 2011-15, (premiums in £ million, average in £)
Figure 41: UK corporate PMI market size, by gross earned premiums and average annual premium per subscriber, 2011-15, (£ million and average in £)
Figure 42: UK corporate PMI claims paid and gross margin development, 2011-15, (premiums and claims in £ million and margins in %)
Figure 43: UK corporate PMI claims paid and gross margin development, 2011-15, (premiums and claims in £ million and margins in %)
Marine, Aviation and Transit (MAT)
Figure 44: UK MAT insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 45: UK MAT insurance market size, by premiums, 2011-15, (£ million)
Figure 46: UK marine insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 47: UK aviation insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 48: UK transport insurance market size, by premiums, outgoing payments and underwriting result, 2011-15, (£ million)
Figure 49: UK MAT general insurance, by distribution channels, 2011-15, (% of total)
Figure 50: UK MAT general insurance, by distribution channels, 2011-15, (% of total)
Trade credit
Figure 51: UK trade credit insurance market size, by premiums and share of commercial pecuniary loss market, 2011-15, (£ million and %)
Figure 52: UK trade credit insurance market size, by gwp and share of commercial pecuniary loss market, 2011-15, (£ million and %)
Figure 53: UK trade credit insurance market, by number of policies and insured turnover amount, 2011-15, (in units and £ million)
Figure 54: UK trade credit insurance market, by number of policies and insured turnover amount, 2011-15, (in units and £ million)
Figure 55: UK trade credit insurance, by number of claims and gross payments, 2011-15, (Claim number in units and gross payments in £000)
Figure 56: UK trade credit insurance market share of premiums, by market segment, customer size and insured turnover and by distribution channels, 2011-15, (%)
Figure 57: Share of trade credit premiums, by segmentation, 2011 and 2015, (%)
INDUSTRY STRUCTURE
Key points
Industry development
Changes made to organisational structures to maintain market share...
...with industry M&A stagnating after a period of consolidation
2016 saw an increase in the number of businesses operating in the industry, but a reduction in outlets
Figure 58: Analysis of the changes in the structure of the non-life insurance industry, 2012-16, (number of outlets and businesses)
Structure by employment
Figure 59: Analysis of the employment structure of the non-life insurance industry, 2015 and 2016, (number of employees and outlets)
Structure by turnover
Figure 60: Analysis of the financial structure of the non-life insurance industry, 2015 and 2016, (£000 and number of businesses)
COMPANY PROFILES
Figure 61: Profiled companies’ combined GWP, 2011-15, (£ million)
AGEAS
Figure 62: Financial analysis of ageas insurance limited, 2011-15, (£ million)
Company strategy
AIG EUROPE LIMITED (FORMERLY CHARTIS EUROPE LIMITED)
Figure 63: Financial analysis of AIG Europe Limited, 2011-2015, (£ Million)
Company strategy
ALLIANZ
Figure 64: Financial analysis of Allianz Holdings, 2011-2015, (£ Million)
Company strategy
AVIVA
Figure 65: Financial analysis of Aviva plc, 2011-15, (£ million)
Company strategy
AXA INSURANCE
Figure 66: Financial analysis of AXA Insurance plc, 2011-15, (£ million)
Company strategy
LV INSURANCE
Figure 67: Financial analysis of Liverpool Victoria Insurance Company Limited, 2011-15, (£ million)
Company strategy
QBE INSURANCE (EUROPE)
Figure 68: Financial analysis of QBE Insurance (Europe), 2011-15, (£ million)
Company strategy
RSA GROUP
Figure 69: Financial analysis of RSA Group, 2011-15, (£ million)
Company strategy
FORECAST
Key points
Market size and segmentation
Low, but stable, growth expected in the market
Figure 70: UK market forecast for commercial insurance, in gross written premiums, 2017-21, (£ million)
Figure 71: UK market forecast for commercial insurance, in GWP, 2017-21, (£ million)
Liability insurance accounts for the largest proportion of the market
Figure 72: The UK market forecast for commercial insurance, by type, 2017-21, (£ million)
Figure 73: The UK market forecast for commercial insurance, by type, 2017-21, (% share)
Industry
Insurers look to target emerging markets to boost stagnant income from domestic market
Figure 74: Forecast real growth of direct premiums written in major non-life insurance markets, by country and region, 2017-18, (%)
Brexit will lead to structural changes in the industry, but will also provide opportunities
Insurers adjusting to cyber attack threat
SME under-insurance remains a strong market priority
FURTHER SOURCES AND CONTACTS
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 People (Monthly)
Insurance Times (Fortnightly)
Post Magazine & Insurance Week (Weekly)
The Insurance Insider (Monthly)
Trade exhibitions
BIBA 2017
Digital Insurance World 2017
E-Trade Excellence 2017
Motor Insurance World 2017
The Motor Insurance Summit
UK Broker Summit 2016

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