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UK Motor Insurance Market 2019: Market Trends Report

  • ID: 4760989
  • Report
  • Region: United Kingdom, Great Britain
  • 50 Pages
  • IRN Research
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FEATURED COMPANIES

  • Admiral Group
  • Allianz Insurance
  • Axa Insurance UK
  • Co-op
  • Direct Line Group
  • Hastings Group
  • MORE

In 2018, the author estimate the motor insurance market generated premiums of just over £14 billion, a rise of around 4% over 2017. Between 2013 and 2015, GWP remained relatively flat, but it has grown since.

Between 2018 and 2023, the author predicts that motor insurance GWP will rise by 23% to finish at just over £17 billion. Growth will be steady, if unspectacular, over this period, averaging a little over 4% per year.

Key factors impacting the market today and in the future are:

  • Increasing consumer switching
  • Continued growth in sales via digital channels
  • Regulatory changes which will see reform to whiplash claims, which will help insurer margins
  • Insurers becoming more nimble and flexible
  • The pressure on insurers (and possibly regulatory reform) to end price walking
  • The growing use of InsurTech by insurers and a growing challenge to the major insurers from new InsurTech start-ups.
  • The continued growth in the number of cars on the road, the growing popularity of higher value marques and SUV-type cross-over vehicles.
  • The possible impact of Brexit on the ability of UK drivers to drive in Europe and risk that UK insurers will become subject to the New European Insurance Directive, which could widen the scope of vehicles that need insurance.

This report looks at the motor insurance market, where motor insurance is defined as insurance which covers individuals against the cost of repairing or replacing a vehicle and costs that arise due to injuries caused to other people and damage to their vehicles. Depending on the policy purchased, insurance may also cover the contents included within the vehicle or replacing its contents.

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Admiral Group
  • Allianz Insurance
  • Axa Insurance UK
  • Co-op
  • Direct Line Group
  • Hastings Group
  • MORE

1. Executive Summary

  • Motor insurance market worth over £14 billion in GWP
  • Three key routes to market
  • Almost 30 million cars to insure, with six-in-ten adults insured
  • Consumer and manufacturing trends change the insurance risks
  • Changing consumer behaviour impacts the market
  • Regulatory reforms: A curate’s egg?
  • Insurers embrace InsurTech to improve their operations
  • Premium rates come down but seem to be rising again
  • Brexit
  • Direct Line and Admiral lead the market

2. Introduction

  • Abbreviations

3. Market Structure

  • Direct route or via brokers
  • Over 600 insurers
  • Two channels to market

4. Market Developments and Drivers

  • Almost 29 million cars to insure
  • But the type of cars owned has changed
  • Car crime rises in 2018
  • Decline in road traffic accidents
  • Six-in-ten adults have motor insurance
  • Premium costs encourage fronting
  • Car owners are getting trigger happy
  • As the tendency to automatically renewal is declining
  • But that doesn't mean everything in the garden is rosy
  • So, the FCA decides to act
  • InsurTech a growing feature of developments
  • Civil Liabilities Bill
  • Premiums
  • The Automated and Electric Vehicles Bill (AEVB)
  • Brexit and Europe

5. The Key Players

  • Direct Line and Admiral lead the market
  • Admiral Group
  • Allianz Insurance
  • Ageas
  • Axa Insurance UK
  • Aviva
  • BGL (Holdings) Ltd
  • Co-op
  • Covea Insurance plc
  • Direct Line Group
  • esure Group
  • Hastings Group
  • Markerstudy Group
  • Lloyds Banking Group
  • Liverpool Victoria Friendly Society (LV=)
  • Saga plc
  • Sabre Insurance
  • RSA
  • Zurich

6. Market Size and Trends

  • Motor insurance market worth over £14 billion in GWP

7. The Future

  • GWP predicted to rise by 23%
  • But this implies very little real growth
  • Price pressure to continue

8. Associations

List of Figures
Figure 1 How the last policy was arranged or arranged through, 2017
Figure 2 Estimated breakdown of total GWP, 2018
Figure 3 The number of privately registered cars in the UK (year-end), 2010-2018*
Figure 4 The breakdown of cars licensed in the UK* (% of stock), Q3 2018 and Q3 2010
Figure 5 Share of new car registrations (% of total), 2007 and 2017
Figure 6 Adults reporting suffering a car-related crime and numbers reported to the police (000), 2010-2018
Figure 7 Reported road accidents and casualties, Great Britain, 2010-2018
Figure 8 The rate of unlicensed vehicles in traffic (all cars and light good vehicles), 2010-2017
Figure 9 The penetration of policies and the profile of owners: age, gender, economic indicators, 2017
Figure 10 The penetration of policies and the profile of owners: geographic indicators, 2017
Figure 11 How home insurance buyers read through their documentation, 2017
Figure 12 The number of claims for RTA Personal Injury reported by the CRU*, 2010/11-2017/18
Figure 13 Motor insurance premium rates for comprehensive insurance by purchase source, 2013-2018
Figure 14 Shoparound premiums* for Motor Insurance Policies, 2013-2018
Figure 15 Estimates shares of the motor insurance market (% of gross written premiums), 2018
Figure 16 The estimated size of the UK car insurance market (GWP and NWP £ billion), 2013-2018
Figure 17 Predicted motor insurance GWP, 2018-2023

Note: Product cover images may vary from those shown
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  • Admiral Group
  • Ageas
  • Allianz Insurance
  • Aviva
  • Axa Insurance UK
  • BGL (Holdings) Ltd
  • Co-op
  • Covea Insurance plc
  • Direct Line Group
  • esure Group
  • Hastings Group
  • Liverpool Victoria Friendly Society (LV=)
  • Lloyds Banking Group
  • Markerstudy Group
  • RSA
  • Sabre Insurance
  • Saga plc
  • Zurich
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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