2023
9
UK B2B Insurance Market Report 2023
2023-03-01T03:07:28+00:00
OX1169927
1495
160944
[{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“The UK and wider global business environment remains challenging amidst high inflation, rising interest rates and ongoing supply chain issues affecting several industries. The cost-of-living crisis is also affecting insurers’…

UK B2B Insurance Market Report 2023

£ 1,495 (Excl.Tax)

Report Summary

“The UK and wider global business environment remains challenging amidst high inflation, rising interest rates and ongoing supply chain issues affecting several industries. The cost-of-living crisis is also affecting insurers’ earnings and the B2B insurance industry must work closely with its existing policyholders, as well as prospective policyholders, to access and explore current cover levels and whether they remain financially viable for both parties.”
Lewis Cone, Associate Director – B2B

This Report looks at the following areas:

  • The impact of COVID-19, Brexit and the current economic challenges on the B2B insurance markets.
  • How insurers and policyholders are adapting, and will adapt, to the post-COVID-19 and Brexit environment.
  • The value of the markets in 2023 and beyond.

Table of Contents

  1. Overview

    • Health Insurance
    • Protection Insurance
    • Property Insurance
    • Motor Insurance
    • Key issues covered in this Report
    • Products covered in this Report
    • Health insurance
    • Protection insurance
    • Property insurance
    • Motor insurance
    • Other relevant terms
  2. Executive Summary

    • The five-year outlook for B2B insurance
      • Figure 1: Five-year outlook for B2B insurance, 2023-28
    • Commercial Health Insurance
    • GEPs grow, but corporate share declines
      • Figure 2: The UK market size for commercial health insurance market, by gross earned premiums, 2017-21 (£ million)
    • Health insurance premiums to rise by an average 2.5% per year to 2027
      • Figure 3: The UK market size and forecast for commercial health insurance market, in GEPs, 2017-27 (£ million)
    • Commercial Protection Insurance
    • Group Protection
      • Figure 4: UK group protection market, by premiums received, 2017-21 (£ million)
    • Liability Insurance
      • Figure 5: UK liability insurance market, in GWPs, 2017-21 (£ million)
    • Miscellaneous & Pecuniary Loss
      • Figure 6: UK miscellaneous & pecuniary loss insurance market segmentation, by insurance type in GWPs, 2017-21 (£ million)
    • Trade Credit
      • Figure 7: UK trade credit insurance market size, by GWPs, 2017-21 (£ million)
    • Protection Insurance Forecast
      • Figure 8: The UK market size and forecast for commercial protection insurance, in GWPs, 2017-27 (£ million)
    • Commercial property insurance
    • Market records cumulative 28% growth since 2017
      • Figure 9: The UK commercial property insurance market, in GWPs, 2017-21 (£ million)
    • Extreme weather and changing working patterns will propel growth in property insurance
      • Figure 10: Forecast of commercial property insurance market, in GWP, 2017-27 (£ million)
    • Commercial motor insurance
    • Market has stagnated since 2018
      • Figure 11: UK commercial motor insurance market, in GWPs, 2017-21 (£ million)
    • Stable, but low growth in motor GWPs expected to 2027
      • Figure 12: The UK market forecast for commercial motor insurance, in GWPs, 2017-27 (£ million)
  3. Issues and Insights

    • Current economic factors likely to lead to a rise in underinsurance
    • Increasing instances of extreme weather need to be met by a corresponding increase in suitable insurance products
  4. Health Insurance

    • Overview
    • Corporate PMI
    • PMI in the workplace
    • Gross Earned Premiums and Average Annual Premium
      • Figure 13: UK corporate PMI market size, by gross earned premiums and average premium per subscriber, 2017-21 (premiums in £ million and average in £)
    • Number of subscribers and people covered
      • Figure 14: UK corporate PMI market, by number of subscribers and people covered, 2017-21 (000s)
    • PMI Market Share
      • Figure 15: Estimated market share in the UK PMI market, by company, 2022 (% of total subscription revenue)
    • Controlling costs presents an ongoing challenge for insurers
    • Recent industry deals and developments
    • Market Trends
    • PMI weekly spend and household penetration
      • Figure 16: Estimated regional PMI penetration and weekly spend on PMI premiums in 2019-21 (% of all households and average weekly spend on PMI premiums in £)
    • Household PMI expenditure by age group
      • Figure 17: Average weekly household expenditure on medical insurance premiums, by age, 2017-21 (£)
    • Number of claimants and gross claims rose in 2021, but average claims fall
      • Figure 18: UK corporate PMI market, by number of claimants, gross claims incurred and average claim, 2017-21 (000s, £ million, and £)
    • Cancer accounted for over a third of PMI claims in 2021
      • Figure 19: UK PMI gross claims incurred, by cause of claim, 2021 (%)
  5. Protection Insurance

    • Group Protection
    • Market Size
      • Figure 20: UK group protection market, by premiums received, 2017-21 (£ million)
      • Figure 21: UK group protection market, by number of members per protection scheme, 2017-21 (000s)
    • Liability Insurance
    • Market Size
      • Figure 22: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2017-21 (£ million)
      • Figure 23: UK liability insurance market operating ratios, total and by insurance type, 2017-21 (%)
    • Market Segmentation
      • Figure 24: UK liability market segmentation, by insurance type in GWPs, 2017-21 (£ million)
    • Miscellaneous & Pecuniary Loss
    • Market size
      • Figure 25: UK miscellaneous & pecuniary loss insurance market segmentation, by insurance type in GWPs, 2017-21 (£ million)
      • Figure 26: UK miscellaneous & pecuniary loss insurance market operating ratios, total and by insurance type, 2017-21 (%)
    • Trade Credit
      • Figure 27: UK trade credit insurance market size, by GWPs, 2017-21 (£ million and %)
      • Figure 28: UK trade credit insurance market, by number of policies and insured turnover amount, 2017-21 (in units and £ million)
      • Figure 29: UK trade credit insurance, by number of claims and gross payments, 2017-21 (claim number in units and gross payments in £000)
      • Figure 30: UK trade credit insurance market share of premiums, by market segment, customer size, insured turnover and distribution channels, 2017-21 (%)
  6. Property Insurance

    • Market size and segmentation
    • Market size
      • Figure 31: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2017-21 (£ million)
    • Market segmentation
      • Figure 32: UK commercial property insurance market segmentation, by cover type, in GWP, 2017-21 (£ million)
      • Figure 33: UK commercial property insurance market operating ratios, 2017-21 (%)
    • Market trends
    • Confirmed fraudulent claims value rises, whilst number of confirmed fraudulent claims declines
      • Figure 34: Detected commercial property claims fraud in the UK, by value and volume, 2017-21 (in £000 and 000s)
    • Fire and explosions top claims incurred and notified
      • Figure 35: Gross industrial & commercial property claims incurred, by reason for claim, 2017-21 (£ million)
      • Figure 36: Number of industrial & commercial property claims notified, by reason for claim, 2017-21 (000s)
    • Business interruption payouts surge in 2021, whilst escape of water claims are most settled
      • Figure 37: Gross industrial & commercial property claims paid, by reason for claim, 2017-21 (£ million)
      • Figure 38: Number of industrial & commercial property claims settled, by reason for claim, 2017-21 (000s)
  7. Motor Insurance

    • Market size and segmentation
    • Market size
      • Figure 39: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2017-21 (£ million)
    • Market segmentation
      • Figure 40: UK commercial motor insurance market segmentation, by motor insurance type, in GWP, 2017-21 (£ million)
      • Figure 41: UK commercial motor insurance market operating ratios, 2017-21 (%)
    • Market trends
    • Value of confirmed fraudulent claims rose in 2021, whilst volume of confirmed fraudulent claims declined
      • Figure 42: Detected claims fraud in the UK commercial motor insurance market, by value and volume, 2017-21 (in £000 and 000s)
    • Claims notified, exposure and claims frequency all rise in 2021
      • Figure 43: Exposure, number of claims notified and claims frequency in the UK commercial motor insurance market, 2017-21 (in 000s of vehicle years, 000s of claims, and %)
  8. Market Forecast

    • The five-year outlook for B2B insurance
      • Figure 44: Five-year outlook for B2B insurance, 2023-28
    • Learnings from the last recession
    • Health insurance
    • Protection insurance
      • Figure 45: Industry performance following the last recession, in gross earned premiums and GWPs, 2008-14 (£ million)
    • Motor Insurance
    • Property Insurance
      • Figure 46: Industry performance following the last recession, in GWPs, 2008-14 (£ million)
    • Health Insurance
    • Overview
    • With no immediate reduction in NHS problems expected, commercial PMI growth will continue
      • Figure 47: Market size and forecast for commercial health insurance, in gross earned premiums, 2017-27 (£ million)
    • Protection Insurance
    • Inflation, supply chain problems and insolvency threat will drive growth in protection insurance
      • Figure 48: Market size and forecast for commercial protection insurance, in GWP, 2017-27 (£ million)
    • Property insurance
    • Extreme weather and changing working patterns will propel growth in property insurance
      • Figure 49: Market size and forecast for commercial property insurance, in GWP, 2017-27 (£ million)
    • Motor insurance
    • Stable, but low, growth in motor GWPs expected to 2027
      • Figure 50: Market size and forecast of commercial motor insurance, in GWP, 2017-27 (£ million)
  9. The Impact of the Economy

    • Recession fears remain as growth remains precarious
      • Figure 51: Annual GDP growth rate, 2017-22* (annual % change)
    • Bank Rate rises for the eighth time in 12 months as inflation remains high
      • Figure 52: Bank Rate, by date of adjustment (%), 2008-23
  10. Market Drivers

    • Insurers continue to adapt to post-Brexit environment whilst financial services still await new regulation
    • UK’s financial position in the EU
    • IPT rate remains unchanged but changes before the next election are expected
    • 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
    • Regulatory Bodies
    • Prudential Regulation Authority
    • The IFRS 17
  11. Industry Structure

    • Industry development
    • Swiss Re launches prototype that could play a role in insurance portfolio decarbonisation
    • The number of non-life insurance businesses and outlets fell in 2022
      • Figure 53: Analysis of the changes in the structure of the non-life insurance industry, 2018-22 (number of outlets and businesses)
    • Structure by employment
      • Figure 54: Analysis of the employment structure of the non-life insurance industry, 2021 and 2022 (number of employees and outlets)
    • Structure by turnover
      • Figure 55: Analysis of the financial structure of the non-life insurance industry, 2021 and 2022 (£000 and number of businesses)
  12. Competitive Strategies

    • AXA revamps its intermediated SME business operating model
    • Aviva, Capsule and Codat pilot a new way to insure high-growth SMEs
    • Zego partners with several other firms to boost and expand its motor fleet offering
    • Aviva rolls out diverse and inclusive-focused group PMI benefits
    • Zurich launches intermediary portal for group life and group income protection customers
  13. Company Profiles

    • Admiral Group plc
    • Recent company activity
    • Financial information
      • Figure 56: Financial analysis of Admiral Group plc, 2017-21 (£ million)
    • AIG UK Limited
    • Financial information
      • Figure 57: Financial analysis of AIG UK Limited, 2019-21 (£ million)
    • Aviva
    • Recent company activity
    • Financial information
      • Figure 58: Financial analysis of Aviva plc, 2017-21 (£ million)
    • AXA
    • Recent company activity
    • Financial information
      • Figure 59: Financial analysis of AXA, 2017-21 (£ million)
    • Bupa
    • Recent company activity
    • Financial information
      • Figure 60: Financial analysis of Bupa, 2017-21 (£ million)
    • Covéa Insurance
    • Recent company activity
    • Financial information
      • Figure 61: Financial analysis of Covéa Insurance, 2017-21 (£ million)
    • Direct Line
    • Recent company activity
    • Financial information
      • Figure 62: Financial analysis of Direct Line, 2017-21 (£ million)
    • Hiscox
    • Recent company activity
    • Financial information
      • Figure 63: Financial analysis of Hiscox, 2017-21 (£ million)
    • RSA Group
    • Recent company activity
    • Financial information
      • Figure 64: Financial analysis of RSA Group, 2017-21 (£ million)
    • VitalityHealth
    • Recent company activity
    • Financial information
      • Figure 65: Financial analysis of VitalityHealth Limited, 2018-22 (£000)
    • Zurich
    • Recent company activity
    • Financial information
      • Figure 66: Financial analysis of Zurich, 2018-21 (£ million)
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  15. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
    • Health Insurance
      • Figure 67: The UK market size and forecast for commercial health insurance, in gross earned premiums, 2017-27 (£ million)
    • Protection Insurance
      • Figure 68: The UK market size and forecast for protection insurance, in GWPs, 2017-27 (£ million)
    • Property insurance
      • Figure 69: The UK market size and forecast for commercial property insurance, in GWPs, 2017-27 (£ million)
    • Motor insurance
      • Figure 70: The UK market size and forecast for commercial motor insurance, in GWPs, 2017-27 (£ million)
    • Market drivers and assumptions
    • Forecast methodology
  16. Further Sources and Contacts

    • Trade Associations
    • Association of Insurance and Risk Managers (Airmic)
    • Association of British Insurers (ABI)
    • British Insurance Brokers’ Association (BIBA)
    • Chartered Insurance Institute (CII)
    • Financial Conduct Authority (FCA)
    • International Underwriting Association of London (IUA)
    • London & International Insurance Brokers’ Association (LIIBA)
    • Motor Insurers’ Bureau (MIB)
    • Trade Magazines
    • Continuity Insurance & Risk (Bimonthly)
    • Insurance Age (Monthly)
    • Insurance Insider (Monthly)
    • Insurance Times (Monthly)
    • Post Magazine & Insurance Week (Weekly)
    • Trade Exhibitions
    • ABI Annual Conference 2023
    • BIBA 2023
    • Broker Expo
    • COVER Wellbeing 360 Summit 2023
    • Motor & Mobility 2023
    • Property Insurance Claims Group Conference

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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