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Insurance Market Market Report 2012 Product Image

Insurance Market Market Report 2012

  • ID: 2229532
  • May 2012
  • Region: United Kingdom
  • Key Note Publications Ltd

FEATURED COMPANIES

  • AGEAS INSURANCE LTD
  • ALLIANZ INSURANCE PLC
  • AVIVA PLC
  • AXA INSURANCE UK PLC
  • HBOS PLC
  • LEGAL & GENERAL GROUP PLC
  • MORE

This Key Note Market Report examines the market for insurance in the UK, focussing on both the general insurance and long-term insurance sectors. The market for insurance has experienced prolonged difficulties of late, with some significant declines in value witnessed in recent years. The market contracted year-on-year between 2007 and 2010, and Key Note is predicting that a further decline in value will be seen in 2011, when the market is expected to have fallen by a further 0.7% from £144.6bn in 2010 to an estimated £143.63bn in 2011.

The long-term insurance sector has been hit the hardest, and much of the decline in the industry's value is down to the value of the long-term insurance sector falling from £185.38bn in 2007 to £108.42bn in 2011, an overall fall of 41.5%. The occupational pensions sector is the largest subsector of long-term insurance and this has been hit particularly hard by the recession, mostly due to the high levels of unemployment, meaning so many fewer workers are part of such schemes. Income protection insurance and annuities have also fallen fairly considerably from their 2009 peak.

Although the general insurance sector declined READ MORE >

FEATURED COMPANIES

  • AGEAS INSURANCE LTD
  • ALLIANZ INSURANCE PLC
  • AVIVA PLC
  • AXA INSURANCE UK PLC
  • HBOS PLC
  • LEGAL & GENERAL GROUP PLC
  • MORE

Executive Summary

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Long-Term Insurance
Life Insurance
Pensions
Annuities
Income Protection
General Insurance
Motor
Property
General Liability
Accident and Health
Pecuniary Loss
MARKET TRENDS
Compensation Culture
Growth of Specialist Insurance
Impact of the Recession
Growth of the Internet and Online Price Comparison Sites
Persistently Soft Market
ECONOMIC TRENDS
Population
Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2007-2011
Gross Domestic Product
Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices
(£m), 2007-2011
Figure 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices
(£m), 2007-2011
Inflation
Table 1.3: UK Rate of Inflation (%), 2007-2011
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2007-2011
Figure 1.2: Actual Number of Unemployed Persons
in the UK (million), 2007-2011
Household Disposable Income
Table 1.5: UK Household Disposable Income Per Capita (£), 2007-2011
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Table 2.1: The Total UK Insurance Market by Net Premium Income by Sector (£m),
2007-2011
BY MARKET SECTOR
Long-Term Insurance
Table 2.2: The UK Long-Term Insurance Sector by Net Premium Income by Subsector
(£m), 2007-2011
Individual/Personal Pensions
Table 2.3: Personal Pensions in Force in the UK by Number
of Policies and Regular-Premium Income (000 and £m), 2007-2011
Life Insurance
Table 2.4: Total Linked and Non-Linked Individual Life Business in Force in the UK
by Number of Policies and Regular Premium Income (number and £m),
2007-2011
Income Protection
Table 2.5: Income Protection Policies in Force in the UK by Number of Policies
and Premium Income (000 and £m), 2007-2011
Annuities
Table 2.6: Purchased Life Annuities in Force in the UK
by Number of Policies and Annual Payments (000 and £m), 2007-2011
General Insurance
Table 2.7: The UK General Insurance Sector by Net Premium
Income by Subsector (£m), 2007-2011
Motor Insurance
Table 2.8: The UK Motor Insurance Subsector by Net Premium Income (£m),
2007-2011
Property Insurance
Table 2.9: The UK Property Insurance Subsector by Net Premium Income (£m),
2007-2011
Accident and Health
Table 2.10: The UK Accident and Health Insurance Subsector
by Net Premium Income (£m), 2007-2011
Private Medical Insurance
Table 2.11: The UK Private Medical Insurance Subsector
by Net Premium Income (£m), 2007-2011
General Liability Insurance
Table 2.12: The UK General Liability Insurance Subsector
by Net Premium Income (£m), 2007-2011
Pecuniary Loss Insurance
Table 2.13: The UK Pecuniary Loss Insurance Subsector
by Net Premium Income (£m), 2007-2011

3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 3.1: Number of UK VAT- and/or PAYE-Based
Enterprises Engaged in Insurance by Turnover Sizeband (number and %), 2011
EMPLOYMENT
Table 3.2: Number of UK VAT- and/or PAYE-Based
Enterprises Engaged in Insurance by Employment Sizeband
(number and %), 2011
DISTRIBUTION
Direct Sales Forces
Direct Marketing
Online Selling
Tied Agents
Multi-Tied Agents
Independent Financial Advisors
Telephone Selling
Banks and Building Societies
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
Association of British Insurers
The International Underwriting Association
National Association of Pension Funds

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Table 4.1: The UK's Top Ten Insurers in General and Long-Term Business by Net UK
Premium Income (£m), 2010
AEGON UK PLC
Ageas Insurance Ltd
Allianz Insurance PLC
Aviva PLC
AXA Insurance UK PLC
BUPA Finance PLC
Chartis Europe Ltd
Direct Line Insurance Group PLC
Legal & General Group PLC
Lloyds Banking Group PLC
The Prudential Assurance Company Ltd
Royal & Sun Alliance Insurance PLC
Standard Life PLC
Zurich Financial Services (UKISA) Ltd
OTHER COMPANIES
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 3.3: Main Media Advertising Expenditure
on the Main Insurance Sectors (£000), Years Ending December 2010 and 2011

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
CONSUMER PENETRATION
Life Assurance
Table 6.1: Penetration of Life Assurance in Great Britain
by Sex, Age, Social Grade, Region, Presence of Children in Household and Summary
Family Income (% of adults), Year Ending September 2011
Comprehensive Car Insurance
Table 6.2: Penetration of Comprehensive Car Insurance in Great Britain by Sex, Age,
Social Grade, Region, Presence of Children in Household and Summary Family
Income (% of adults), Year Ending September 2011
Private Medical Insurance
Table 6.3: Penetration of Private Medical Insurance
in Great Britain by Sex, Age, Social Grade, Region, Presence
of Children in Household and Summary Family Income
(% of adults), Year Ending September 2011
Buildings and Contents Insurance
Table 6.4: Penetration of Buildings and Contents Insurance from the Same Insurer
in Great Britain by Sex, Age, Social Grade, Region, Presence of Children
in Household and Summary Family Income (% of adults),
Year Ending September 2011
Holiday and Travel Insurance
Table 6.5: Penetration of Holiday and Travel Insurance in Great Britain by Sex, Age,
Social Grade, Region, Presence of Children in Household and Summary Family
Income (% of adults), Year Ending September 2011

7. Current Issues
ECONOMIC DOWNTURN
EMERGING MARKETS
FLOOD RISK AND INSURANCE PROTECTION
FRAUD
Insurance Fraud Enforcement Department
Insurance Fraud Register
POLITICAL AND LEGISLATIVE ISSUES
Abolition of the Financial Services Authority
Asbestos-Related Claims Clarification
European Court of Justice Gender Rulings
Financial Transactions Tax
Proposed Presumption of Death Act
Referral Fees and Personal Injury Claims
Solvency II
EU SOVEREIGN DEBT CRISIS
2011 NATURAL DISASTER CLAIMS
PAYMENT PROTECTION INSURANCE
PENSIONS
Ageing Population and Mortality Rate
Automatic Pensions Enrolment
Life Assurance Premium Tax Relief
Pension Income Tax Threshold
TECHNOLOGY

8. The Global Market
THE WORLD'S LARGEST INSURANCE MARKETS
Table 8.1: The World's Largest Insurance Markets
by Total Premium Income ($m and %), 2008 and 2010
Table 8.2: Insurance Premiums as a Proportion of GDP
— the Top 15 Countries in the World (%), 2010
GLOBAL OVERVIEW

9. Forecasts
INTRODUCTION
General Economic Forecasts
Table 9.1: Economic Forecasts (000, % and million), 2012-2016
Figure 9.1: Forecast and Actual Number of Unemployed Persons in the UK
(million), 2007-2016
FORECASTS 2012 TO 2016
Table 9.2: The Forecast Total UK Insurance Market
by Net Premium Income by Sector (£m), 2012-2016
MARKET GROWTH
Figure 9.2: The Forecast and Actual Total UK Insurance Market
by Net Premium Income by Sector (£m), 2007-2016
FUTURE TRENDS
International Outlook
Greater Personalisation of Products
Greater Use of the Internet
Ageing Population

10. Company Profiles
AGEAS INSURANCE LTD
ALLIANZ INSURANCE PLC
AVIVA PLC
AXA INSURANCE UK PLC
DIRECT LINE INSURANCE GROUP PLC
HBOS PLC
LEGAL & GENERAL GROUP PLC
THE PRUDENTIAL ASSURANCE COMPANY LTD
ROYAL & SUN ALLIANCE INSURANCE PLC

11. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region

- AGEAS INSURANCE LTD
- ALLIANZ INSURANCE PLC
- AVIVA PLC
- AXA INSURANCE UK PLC
- DIRECT LINE INSURANCE GROUP PLC
- HBOS PLC
- LEGAL & GENERAL GROUP PLC
- THE PRUDENTIAL ASSURANCE COMPANY LTD
- ROYAL & SUN ALLIANCE INSURANCE PLC

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