2021
9
UK B2B Insurance Market Report 2021
2021-02-06T03:02:49+00:00
OX1042275
1495
133703
[{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“Many small and medium-sized businesses have been significantly hit by the pandemic. Insurers’ sector and business expertise can help their clients stabilise operations and, in the process, help stabilise their…

UK B2B Insurance Market Report 2021

£ 1,495 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK B2B Insurance market, including the behaviours, preferences and habits of the consumer.

The B2B Insurance market has seen some turbulent growth in the last 5 years, with different economic pressures and uncertainty hardening the market and seeing lower interest rates even prior to the COVID-19 pandemic. The lockdowns in 2020 saw further cuts to interest rates to help boost the economic recovery in the wake of the pandemic, which has increased profitability pressures on the sector.

While there was a 14% cumulative growth in the market between 2016 and 2020, the increased pressures on the sector is going to cause further issues for the sector. In order for the market to meet the growing demand for insurance protection in a commercially viable way, prices will need to be increased. Brexit has also caused a major amount of uncertainty between 2016 and 2020, with longer-term implications for domestic insurance.

This report covers the current state of the UK B2B Insurance market, as well as future predictions for market growth. Complications with the Brexit agreement, such as the loss of passporting rights, could cause some short term and long term challenges for the sector.

Read on to discover more details or take a look at all of our UK Financial Services market research.

Quickly understand

  • The impact of COVID-19 and Brexit on B2B insurance, and how insurers and policyholders alike will react to the new market conditions.
  • How the B2B insurance market will adapt to the post-COVID-19 and Brexit environment.
  • The value of the market in 2021 and beyond.

Covered in this report

Brands: Lloyd’s TSB, Ageas Broker Connect, Peach Pi, Gresham Underwriting, Allianz, AIG, AXA insurance, Hiscox, QBE, RSA Group.

Expert analysis from a specialist in the field

Written by Lewis Cone, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Many small and medium-sized businesses have been significantly hit by the pandemic. Insurers’ sector and business expertise can help their clients stabilise operations and, in the process, help stabilise their own commercial insurance line of business.

Lewis Cone
Senior B2B Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • COVID-19 and B2B insurance
      • Figure 1: Expected impact of COVID-19 on B2B insurance, short, medium, and long term, 25 January 2021
    • The market
    • Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
      • Figure 2: The UK commercial insurance market, in GWPs, 2016-2020, (£ million)
    • Liability GWPs record 27% growth since 2016
      • Figure 3: UK commercial insurance market, in GWP, by insurance type, 2020, (£ million)
    • US strengthens its dominant position in the global non-life insurance market
      • Figure 4: The world’s six largest commercial insurance markets, in direct non-life insurance premiums, 2019, ($ billion)
    • Hardening market and premium pricing to drive growth in post-pandemic world
      • Figure 5: The UK market forecast for commercial insurance, in gross written premiums, 2021-25, (£ million)
  3. Issues and Insights

    • Supreme Court decision on COVID business interruption claims could hit the industry hard
    • SMEs remain underinsured with inadequate online presence adding another barrier to gaining insurance cover
  4. The Market – Key Takeaways

    • Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
    • Liability GWPs record 27% growth since 2016
    • Hardening market and premium pricing to drive growth in post-pandemic world
  5. Market Size and Market Segmentation

    • Market reports decline of 1.5% in 2020 following pandemic-driven policy cancellations
      • Figure 6: The UK market for commercial insurance, in gross written premiums, 2016-20, (£ million)
    • US strengthens its dominant position in the global commercial insurance market
      • Figure 7: The world’s 10 largest commercial insurance markets, 2010 and 2019, (in $ billion and % share of non-life market and GDP, respectively)
    • Market Segmentation
    • Liability GWPs record 27% growth since 2016
      • Figure 8: UK commercial insurance market, in GWP, by insurance type, 2016-20, (£ million)
    • Independent intermediaries collect 78% of all commercial insurance lines
      • Figure 9: UK commercial lines general insurance, by distribution channels, 2015-19, (% of total)
    • Canada records strongest non-life premium growth in 2019 and has the strongest five-year growth average
      • Figure 10: Real growth of direct premiums written in major non-life insurance markets, by country and region, 2015-19, (%)
  6. Market Forecast

    • Short-, medium- and long-term impact on the industry
      • Figure 11: Expected impact of COVID-19 on B2B Insurance, short, medium, and long term, 25 January 2021
    • Market drivers and assumptions
      • Figure 12: Key drivers affecting Mintel’s market forecast, 2015-2025, (in % annual change and annual average % rate) – (prepared on 21 January 2021)
    • Learnings from the last recession
      • Figure 13: Industry performance following the last recession, 2008-2014, (£ million)
    • Market overview
    • Hardening market and premium pricing to drive growth as businesses seek survival and then growth in a post-pandemic world
      • Figure 14: The UK market forecast for commercial insurance, in gross written premiums, 2021-25, (£ million)
    • Property insurance will account for highest market value, but motor insurance will experience greatest growth as it rebounds after pandemic inactivity
    • Motor
    • Liability
    • Health insurance
    • MAT
      • Figure 15: The UK market forecast for commercial insurance, by type, 2021-25, (£ million)
    • Mactavish calls for industry reform
    • Lloyd’s of London to conduct insurance products review
  7. The Impact of the Economy

    • Annual GDP growth falls to decade low in 2019 and will decline in 2020 due to COVID-driven economic shutdowns
      • Figure 16: Annual GDP growth rate, 2016 – 2020*, (Annual % change)
  8. Market Trends

    • Motor
    • Impact of Brexit on motor industry
    • Trends in the commercial motor insurance market
      • Figure 17: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 18: UK commercial motor insurance market segmentation, by motor insurance type in GWP, 2015-19, (£ million)
      • Figure 19: UK commercial motor insurance market operating ratios, 2015-19, (%)
      • Figure 20: Detected claims fraud in the UK commercial motor insurance market, in value and volume, 2015-19, (in £000 and 000)
    • Property
      • Figure 21: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 22: UK commercial property insurance market segmentation, by type of cover, in GWP, 2015-19, (£ million)
      • Figure 23: UK commercial property insurance market operating ratios, 2015-19, (%)
      • Figure 24: Detected claims fraud in the UK commercial property insurance market, in value and volume, 2015-19, (in £000 and 000)
    • Liability
      • Figure 25: UK liability insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 26: UK liability insurance market segmentation, by liability insurance type in GWP, 2015-19, (£ million)
      • Figure 27: UK liability insurance market operating ratios, total and by liability insurance type 2015-19, (%)
    • Private medical insurance
      • Figure 28: UK corporate PMI market size, by gross earned premiums, 2015-19, (premiums in £ million, average in £)
      • Figure 29: UK corporate PMI claims paid and gross margin development, 2015-19, (premiums and claims in £ million and margins in %)
    • Marine, aviation and transit
      • Figure 30: UK MAT insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 31: UK marine insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 32: UK aviation insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
      • Figure 33: UK transport insurance market size, by premiums, outgoing payments and underwriting result, 2015-19, (£ million)
    • Trade credit
      • Figure 34: UK trade credit insurance market size, by premiums and share of commercial pecuniary loss market, 2015-19, (£ million and %)
      • Figure 35: UK trade credit insurance market, by number of policies and insured turnover amount, 2015-19, (in units and £ million)
      • Figure 36: UK trade credit insurance, by number of claims and gross payments, 2015-19, (claim number in units and gross payments in £000)
      • Figure 37: UK trade credit insurance market share of premiums, by market segment, customer size and insured turnover and by distribution channels, 2015-19, (%)
  9. Market Drivers

    • Brexit is complete and insurers must now adapt to the new operating environment
    • Consultation held on IPT to improve tax administration and prevent bad outcomes, 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
    • Regulatory Bodies
    • Prudential Regulation Authority
    • The IFRS 17
  10. Companies and Brands – Key Takeaways

    • Lloyd’s of London launches 2021 transformation plan
    • Insurers launch new broker platforms
  11. Industry Structure

    • Industry development
    • Lloyd’s of London launches 2021 transformation plan
    • Peach Pi launches industry collaborative advisory forum
    • The FCA sets priorities for commercial and personal insurance sector
    • Industry M&A activity
    • The number of businesses operating in the industry continues to rise, whilst the number of outlets declines
      • Figure 38: Analysis of the changes in the structure of the non-life insurance industry, 2016-20, (number of outlets and businesses)
    • Structure by employment
      • Figure 39: Analysis of the employment structure of the non-life insurance industry, 2019 and 2020, (number of employees and outlets)
    • Structure by turnover
      • Figure 40: Analysis of the financial structure of the non-life insurance industry, 2019 and 2020, (£000 and number of businesses)
  12. Competitive Strategies

    • Gresham launches Professional Select to help brokers
    • Insurers launch new broker platforms
    • Allianz launches digital claims hub and app with live chat functionality
  13. Company Profiles

    • Ageas
    • Recent company activity
    • Financial information
      • Figure 41: Financial analysis of Ageas Insurance Limited, 2015-19, (£ million)
    • AIG UK Limited
    • Recent company activity
    • Financial information
      • Figure 42: Financial analysis of AIG UK Limited, 2019, (£ million)
    • Allianz
    • Recent company activity
    • Financial information
      • Figure 43: Financial analysis of Allianz Holdings, 2015-19, (£ million)
    • AXA Insurance
    • Recent company activity
    • Financial information
      • Figure 44: Financial analysis of AXA, 2015-19, (£ million)
    • Hiscox
    • Recent company activity
    • Financial information
      • Figure 45: Financial analysis of Hiscox, 2015-19, (£ million)
    • QBE UK Limited
    • Recent company activity
    • Financial information
      • Figure 46: Financial analysis of QBE UK Limited, 2015-19, (£ million)
    • RSA Group
    • Recent company activity
    • Financial information
      • Figure 47: Financial analysis of RSA Group, 2015-19, (£ million)
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  15. Further Sources and Contacts

    • Trade Associations
    • Trade Magazines
    • Trade Exhibitions

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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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