Table of Contents
Executive Summary
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- The market
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- Figure 1: The UK market for commercial insurance, in GWPs, 2015-19, (£ million)
- Miscellaneous & pecuniary loss premiums record 52% growth in GWP since 2015
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- Figure 2: UK Commercial insurance market, in GWP, by insurance type, 2019, (£ million)
- US dominates global market but China continues to record strongest growth
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- Figure 3: The world’s six largest commercial insurance markets, in direct non-life insurance premiums, 2018, (in $ billion)
- Uncertainty to drive growth as business looks to protect itself against transitional market loss
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- Figure 4: The UK market forecast for commercial insurance, in gross written premiums, 2020-24, (£ million)
- Companies and brands
- What we think
Issues and Insights
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- Cyber insurance GWPs more than double in the last two years, but lack of knowledge still threatens businesses
- The facts
- The implications
- Industry in urgent need of full digitalisation to truly benefit from business opportunities
- The facts
- The implications
The Market - What You Need to Know
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- Market growth continues in 2019 following decade-high growth in 2018
- Uncertainty to drive growth as business looks to protect itself against transitional market loss
Market Size and Market Segmentation
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- Market sees growth of 3.7% in 2019, following decade-high growth in 2018
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- Figure 5: The UK market for commercial insurance, in gross written premiums, 2015-19, (£ million)
- US dominates commercial insurance market but China continues to record strongest growth
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- Figure 6: The world’s 10 largest commercial insurance markets, 2010 and 2018, (in $ billion and % share of non-life market and GDP, respectively)
- Market Segmentation
- Miscellaneous & pecuniary loss premiums record 52% growth in GWP since 2015
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- Figure 7: UK commercial insurance market, in GWP, by insurance type, 2015-19, (£ million)
- Independent intermediaries collect almost four fifths of all commercial insurance lines
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- Figure 8: UK commercial lines general insurance, by distribution channels, 2014-18, (% of total)
- Canada records strongest non-life premium growth in 2018, but the US records highest five-year growth average
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- Figure 9: Real growth of direct premiums written in major non-life insurance markets, by country and region, 2014-18, (%)
Market Forecast
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- Uncertainty to drive growth as business looks to protect itself against transitional market loss
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- Figure 10: The UK market forecast for commercial insurance, in gross written premiums, 2020-24, (£ million)
- Property insurance holds majority market share, just, whilst motor insurance will experience greatest growth
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- Figure 11: The UK market forecast for commercial insurance, by type, 2020-24, (£ million)
- Bank of England to stress-test financial climate change risks
- London Matters 2020 commissioned to measure the market’s progress
The Impact of the Economy
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- Annual GDP growth falls to six-year low in 2018 and continues to slow in 2019
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- Figure 12: GDP growth rate, Q3 2015-Q3 2019, (% change on previous quarter)
Market Trends
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- Motor
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- Figure 13: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 14: UK commercial motor insurance market segmentation, by motor insurance type in GWP, 2014-18, (£ million)
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- Figure 15: UK commercial motor insurance market operating ratios, 2014-18, (%)
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- Figure 16: Detected claims fraud in the UK commercial motor insurance market, in value and volume, 2014-18, (in £000 and 000)
- Property
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- Figure 17: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 18: UK commercial property insurance market segmentation, by type of cover, in GWP, 2014-18, (£ million)
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- Figure 19: UK commercial property insurance market operating ratios, 2014-18, (%)
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- Figure 20: Detected claims fraud in the UK commercial property insurance market, in value and volume, 2014-18, (in £000 and 000)
- Liability
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- Figure 21: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 22: UK liability insurance market segmentation, by liability insurance type in GWP, 2014-18, (£ million)
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- Figure 23: UK liability insurance market operating ratios, total and by liability insurance type 2014-18, (%)
- Private Medical Insurance
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- Figure 24: UK corporate PMI market size, by gross earned premiums, 2014-18, (premiums in £ million, average in £)
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- Figure 25: UK corporate PMI claims paid and gross margin development, 2014-18, (premiums and claims in £ million and margins in %)
- Marine, Aviation and Transit
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- Figure 26: UK MAT insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 27: UK marine insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 28: UK aviation insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
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- Figure 29: UK transport insurance market size, by premiums, outgoing payments and underwriting result, 2014-18, (£ million)
- Trade Credit
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- Figure 30: UK trade credit insurance market size, by premiums and share of commercial pecuniary loss market, 2014-18, (£ million and %)
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- Figure 31: UK trade credit insurance market, by number of policies and insured turnover amount, 2014-18, (in units and £ million)
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- Figure 32: UK trade credit insurance, by number of claims and gross payments, 2014-18, (claim number in units and gross payments in £000)
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- Figure 33: UK trade credit insurance market share of premiums, by market segment, customer size and insured turnover and by distribution channels, 2014-18, (%)
Market Drivers
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- UK expected to leave the EU by the end of January 2020 with insurers still preparing for the remaining prospect of a ‘no-deal’
- Consultation held on IPT but rate remains unchanged
- 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
- The IFRS 17
Companies and Brands – What You Need to Know
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- Lloyd’s of London invests in new digital platforms to cut costs and streamline processes
- Centres created to provide assistance to smaller businesses
Industry Structure
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- Industry development
- Lloyd’s of London invests heavily in digital transformation
- Counter-fraud database launched to improve detection and reduce costs
- Industry M&A activity
- The number of businesses operating in the industry continues to rise, whilst the number of outlets stagnates
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- Figure 34: Analysis of the changes in the structure of the non-life insurance industry, 2015-19, (number of outlets and businesses)
- Structure by Employment
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- Figure 35: Analysis of the employment structure of the non-life insurance industry, 2018 and 2019, (number of employees and outlets)
- Structure by Turnover
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- Figure 36: Analysis of the financial structure of the non-life insurance industry, 2018 and 2019, (£000 and number of businesses)
Competitive Strategies
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- Allianz launches new website to help businesses manage threats
- Centres created to provide assistance to smaller businesses
- Hiscox launches cyber exposure calculator
Company Profiles
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- Ageas
- Recent company activity
- Financial information
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- Figure 37: Financial analysis of Ageas Insurance Limited, 2014-18, (£ million)
- AIG UK Limited (formerly known as AIG Europe Ltd)
- Recent company activity
- Financial nformation
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- Figure 38: Financial analysis of AIG Europe Limited, 2014-18, (£ million)
- Allianz
- Recent company activity
- Financial information
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- Figure 39: Financial analysis of Allianz Holdings, 2014-18, (£ million)
- AXA Insurance
- Recent company activity
- Financial information
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- Figure 40: Financial analysis of AXA Insurance UK, 2014-18, (£ million)
- Hiscox
- Recent company activity
- Financial information
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- Figure 41: Financial analysis of Hiscox, 2014-18, (£ million)
- QBE UK Limited (formerly known as QBE Insurance (Europe) Limited)
- Recent company activity
- Financial information
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- Figure 42: Financial analysis of QBE UK Limited (formerly known as QBE Insurance (Europe) Limited), 2014-18, (£ million)
- RSA Group
- Recent company activity
- Financial information
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- Figure 43: Financial analysis of RSA Group, 2014-18, (£ million)
Appendix - Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade Associations
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