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United Kingdom (UK) Commercial Motor Insurance - Market Dynamics and Opportunities 2021

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  • 41 Pages
  • December 2021
  • Region: United Kingdom
  • GlobalData
  • ID: 5526876
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This report analyzes UK commercial motor insurance, looking at the market in terms of GWP, claims, road casualties, the motor parc, regulations, and opportunities. It discusses the impact of COVID-19 and further implications related to claims. It also looks at the leading competitors and their product offerings, as well as providing future forecasts of market size up to 2025.

In 2020, 2.3% growth in gross written premiums (GWP) in the UK commercial motor insurance market was driven by an increase in the number of light goods vehicles (LGVs) on the road - an effect of increasing demand for home deliveries amid the COVID-19 pandemic. A large fall in road accidents for the year meant claims were also significantly down on 2019 levels. This came about as roads were utilized at below-average rates from March 2020 onwards, especially in periods of national lockdowns. Despite this fall in the number of claims, the average cost of claims continued to rise, reflecting the increasing complexity and evolving technology fitted into modern vehicles. As cutting-edge technology becomes more prevalent, these issues will subside as manufacturers, technicians, and insurers get to grips with the repair processes and costs in modern vehicles.


  • GWP in the commercial motor insurance market grew by 2.3% to reach £5.0 billion in 2020.
  • The total number of commercial vehicles on UK roads declined by 2.4% in 2020. However, the number of LGVs on roads grew by 97,000, driven by increased demand for home deliveries.
  • Total claims notified fell 28.1% in 2020 due to COVID-19-induced lockdowns. But the average cost of claims continued to rise, increasing 3.3% to £3,319 in 2020.

Reasons to Buy

  • Determine the underlying factors affecting the commercial motor insurance market.
  • Understand the impact of new regulations in the industry.
  • Observe the actions and reactions of incumbent market leaders and insurtech newcomers.
  • Anticipate new challenges and changes to the market going forward.

Table of Contents

1. Executive Summary
1.1 Market overview
1.2 Key findings
1.3 Critical success factors
2. Market Dynamics
2.1 The commercial motor market recorded another year of growth in 2020
2.2 The claims landscape in commercial motor
3. Competitor Dynamics
3.1 Overview of the market leaders
3.2 Insurtechs and newcomers
4. The Market Going Forward
4.1 The commercial motor market will continue to grow
4.2 The Civil Liability Act will start impacting the industry
4.3 Technological evolution in the auto industry is affecting motor insurers
4.4 EVs grow in popularity among commercial fleets
4.5 Autonomous vehicles in the commercial landscape
4.6 Technological change will transform the gig economy
5. Appendix
5.1 Abbreviations and acronyms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading
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List of Tables
Table 1: Total number of commercial vehicles by type (000s), 2016-20
Table 2: Volume and annual growth rates of total claims recorded and settled, 2013 - 14 to 2020 - 21
Table 3: UK commercial motor insurance top 10 competitor GWP and market shares, 2018-20
Table 4: Commercial motor insurance market GWP and annual growth, 2020 - 25f
Table 5: Uptake in technology trends for personal vehicles, 2018-20
List of Figures
Figure 1: The UK commercial motor insurance market grew by 2.3% in 2020
Figure 2: Total licensed commercial vehicles in the UK fell 2.4% in 2020
Figure 3: Miles driven fell for every vehicle type in 2020
Figure 4: A third of UK SMEs have some form of UBI policy
Figure 5: Average fuel prices dropped during the first lockdown
Figure 6: Despite greater exposure, total claims notified and claims frequency declined in 2020
Figure 7: The average claim cost continues to rise, reaching an all-time high in 2020
Figure 8: Claims recorded and claims settled fell dramatically in 2020
Figure 9: Total casualties were artificially low in 2020
Figure 10: RSA remains the market leader with a 13.4% market share
Figure 11: The commercial motor insurance market will continue to grow
Figure 12: Forecasting methodology

Companies Mentioned

A selection of companies mentioned in this report includes:

  • RSA
  • Allianz
  • Aviva
  • AXA
  • NFU Mutual
  • Admiral
  • Zurich
  • QBE
  • Direct Line Group
  • Haven Insurance
  • LV=
  • Zego
  • Swiss Re
  • Ginger
  • Flock
  • Honcho