This report analyzes the UK household insurance market, looking at drivers of uptake across different demographics and dwelling types. The report discusses the claims landscape as well as the broader housing market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. Future impacts - including climate change, smart home devices, and changing living arrangements - are also examined.
Gross written premiums (GWP) declined by 0.8% in 2020. This was driven by a 1.3% fall in total policies written across all three products in the home insurance space. Average premiums have fluctuated on a quarterly basis, with the average price of buildings-only and combined policies in 2020 at the same level as they were in 2016. Meanwhile, contents-only policies were £9 lower over the same period. This is despite increases in average claim costs, house prices, and house repair costs. Correspondingly, insurers’ underwriting profitability in the market declined considerably in 2020. House price increases have been driven by the stamp duty holiday from July 2020 to October 2021 boosting home purchases, while the pandemic slowed new house-build completions and increased repair costs thanks to global supply side issues. We forecast an increase in GWP in the market in 2021 before a gradual, year-on-year contraction until 2025.
Gross written premiums (GWP) declined by 0.8% in 2020. This was driven by a 1.3% fall in total policies written across all three products in the home insurance space. Average premiums have fluctuated on a quarterly basis, with the average price of buildings-only and combined policies in 2020 at the same level as they were in 2016. Meanwhile, contents-only policies were £9 lower over the same period. This is despite increases in average claim costs, house prices, and house repair costs. Correspondingly, insurers’ underwriting profitability in the market declined considerably in 2020. House price increases have been driven by the stamp duty holiday from July 2020 to October 2021 boosting home purchases, while the pandemic slowed new house-build completions and increased repair costs thanks to global supply side issues. We forecast an increase in GWP in the market in 2021 before a gradual, year-on-year contraction until 2025.
Scope
- The UK home insurance market contracted to £6.32 billion in 2020 - a fall of 0.8%.
- In 2020, average premium prices for combined policies increased by 0.4%. For buildings-only and contents-only policies, they decreased by 1.4% and 0.1% respectively.
- Generation Rent is still a growing, untapped demographic, with less than half of all renters in the UK owning a contents insurance policy.
Reasons to Buy
- Identify underlying drivers of demand and premium prices for home insurance products.
- Examine the nature of the home insurance claims landscape.
- Compare the performances of market leaders.
- Determine how insurtechs are attempting to gain traction in the market.
- Understand the progression of home insurance lines into the future.
Table of Contents
1. Executive Summary
2. Market Dynamics
3. Competitor Dynamics
4. The Market Going Forward
5. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- RSA
- Lloyds Banking Group
- Aviva
- Allianz
- Direct Line Group
- AXA
- Ageas
- Chubb
- NFU Mutual
- Zurich
- LV
- Neos
- Brolly
- Urban Jungle
- Getsafe
- Locket
- Lemonade
- Hiscox
- John Lewis
- Samsung
- Amazon
- Apple
- British Gas
