2022
9
UK B2B Property and Motor Insurance Market Report 2022
2022-02-02T03:04:57+00:00
OX1104359
1995
147633
[{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“The events of the last two years have shown how far the motor insurance industry still needs to go in order to satisfy customer expectations and remain relevant in the…

UK B2B Property and Motor Insurance Market Report 2022

$ 1,995 (Excl.Tax)

Report Summary

The UK B2B Property and Motor Insurance report identifies consumer attitudes towards market value, B2B motor insurance trends, and the impact of COVID and Brexit on insurance in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the B2B Property Insurance industry in the UK.

Current Market Landscape

The COVID-19 pandemic has resulted in many commercial properties being shuttered and left vacant for extended periods. This has meant that issues related to problems such as freezing pipes, combustible materials or vandalism may have gone undetected for extended periods of time. As such, claims related to unoccupied premise conditions became more frequent.

  • Between 2022 and 2026, the commercial property insurance market, in GWP terms, is forecast to rise in value by a cumulative 13% – from £5.99 billion to £6.79 billion.

The reopening of the economy has reduced the number of properties left vacant, but flexible working patterns are likely to remain over the foreseeable and become a long-term feature for many office-based working environments.

Future Market Trends in Property and Motor Insurance 

Whilst other segments of the financial services industry, such as retail banking, have embraced new business models and implemented new technologies to transform customer experience, innovation has been harder to achieve within motor insurance. Insurers have been aware of the need to evolve and diversify their offerings to meet the demands of drivers.

The notion of delivering fairer and more transparent pricing has been discussed within the industry for several years. The events of 2020 and 2021 have shown just how far the motor insurance industry still needs to go in order to satisfy customer expectations and remain relevant in the post-pandemic economy.

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

Quickly understand

  • The impact of COVID-19 and Brexit on the B2B property and motor insurance markets, and how insurers and policyholders alike will react to the new market conditions.
  • How the market will adapt to the post-COVID-19 and Brexit environment.
  • The value of the market in 2022 and beyond.

Covered in this report

Brands: Zurich, Aioi Nissay Dowa Insurance, FloodFlash, Munich Re, Zego, Aviva, AXA, Hiscox, Admiral Group, Covéa, ERS Insurance, NFU Mutual.

Expert analysis from a specialist in the field

This report, written by Utku Tansel, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The events of the last two years have shown how far the motor insurance industry still needs to go in order to satisfy customer expectations and remain relevant in the post-pandemic economy. Opportunities for motor insurers following the pandemic will include underwriting new policies that will be associated with the ban on the sale of new petrol and diesel cars in the UK by 2030.

The pandemic has increased the frequency of unoccupied premise condition claims. The reopening of the economy has reduced this rate, but flexible working patterns are likely to remain over the foreseeable, which could impact the level of coverage required in certain sectors.

Utku Tansel - European Retail AnalystLewis 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
    • Property insurance
    • Motor insurance
    • Other relevant terms
  2. Executive Summary

    • COVID-19 and B2B property and motor insurance
      • Figure 1: Expected impact of COVID-19 on B2B property and motor insurance, short, medium, and long term, 2020-25
    • Commercial property insurance
    • Market records cumulative 28% growth between 2016 and 2020
      • Figure 2: The UK commercial property insurance market, in GWPs, 2016-2020, (£ million)
    • Growth will not return to pre-pandemic high, but market expected to rise by 13% to 2026
      • Figure 3: Forecast of commercial property insurance market, in GWP, 2016-26, (£ million)
    • Commercial motor insurance
    • Market stagnates between 2018 and 2020
      • Figure 4: UK commercial motor insurance market, in GWPs, 2016-20, (£ million)
    • Slow but consistent growth in motor GWPs expected to 2026
      • Figure 5: The UK market forecast for commercial motor insurance, in GWPs, 2016-26, (£ million)
  3. Issues and Insights

    • COVID-19 business interruption claims still ongoing, with insurers needing to regain trust
    • Advances in vehicle technology will pose motor insurers new challenges in pricing risks and protecting customer privacy
    • Property underinsurance gap will become more apparent alongside rising incidents of extreme weather and fires
  4. Property Insurance

    • Market size and segmentation
    • Market size
      • Figure 6: UK commercial property insurance market size, by premiums, outgoing payments and underwriting result, 2016-20, (£ million)
    • Market segmentation
      • Figure 7: UK commercial property insurance market segmentation, by cover type, in GWP, 2016-20, (£ million)
      • Figure 8: UK commercial property insurance market operating ratios, 2016-20, (%)
    • Market trends
    • Fraudulent claims value rises, whilst number of fraudulent claims declines
      • Figure 9: Detected commercial property claims fraud in the UK, by value and volume, 2016-20, (in £000 and 000s)
    • Fire and explosions top claims incurred, while escape of water claims most notified
      • Figure 10: Gross industrial & commercial property claims incurred, by reason for claim, 2016-20, (£ million)
      • Figure 11: Number of industrial & commercial property claims notified, by reason for claim, 2016-20, (000s)
    • Fire and explosion claim pay-outs the highest in 2020, whilst escape of water claims are most settled
      • Figure 12: Gross industrial & commercial property claims paid, by reason for claim, 2017-20, (£ million)
      • Figure 13: Number of industrial & commercial property claims settled, by reason for claim, 2017-20, (000s)
    • Record number of commercial lines policies e-traded
  5. Motor Insurance

    • The Vehicle Group Rating System helps produce a standard classification for insurers
    • Market size and segmentation
    • Market size
      • Figure 14: UK commercial motor insurance market size, by premiums, outgoing payments and underwriting result, 2016-20, (£ million)
    • Market segmentation
      • Figure 15: UK commercial motor insurance market segmentation, by motor insurance type, in GWP, 2016-20, (£ million)
      • Figure 16: UK commercial motor insurance market operating ratios, 2016-20, (%)
    • Market trends
    • Value of fraudulent claims rise in 2020 but claim volume declines
      • Figure 17: Detected claims fraud in the UK commercial motor insurance market, by value and volume, 2016-20, (in £000 and 000s)
    • Claims notified and frequency decline, but exposure reaches five-year high
      • Figure 18: Exposure, number of claims notified and claims frequency in the UK commercial motor insurance market, 2016-20, (in 000s of vehicle years, 000s of claims, and %)
    • Usage-based insurance policies on the rise
  6. Market Forecast

    • Short-, medium- and long-term impact on the industries
      • Figure 19: Expected impact of COVID-19 on B2B property and motor insurance, short, medium, and long term, 2020-25
    • Market drivers and assumptions
      • Figure 20: Key drivers affecting Mintel’s market forecast, 2017-2026, (in % annual change and annual average % rate)
    • Learnings from the last recession
      • Figure 21: Industry performance following the last recession, in GWPs, 2008-2014, (£ million)
    • Market overview
    • Property insurance
    • Growth will not return to pre-pandemic high, but market expected to rise by 13% to 2026
      • Figure 22: Forecast of commercial property insurance market, in GWP, 2016-26, (£ million)
      • Figure 23: Market size and forecast of commercial property insurance market, in GWP, 2016-26, (£ million)
    • Motor insurance
    • Slow but consistent growth in motor GWPs expected to 2026
      • Figure 24: Forecast of commercial motor insurance market, in GWP, 2016-26, (£ million)
      • Figure 25: Market size and forecast of commercial motor insurance market, in GWP, 2016-26, (£ million)
  7. The Impact of the Economy

    • UK economy could reach pre-pandemic level in 2021 but Omicron could dampen growth entering 2022
      • Figure 26: Annual GDP growth rate, 2017–2021*, (annual % change)
    • Bank rate rises above its record low, but inflationary pressures could lead to further rate increase
      • Figure 27: Bank rate, 2008-21, by date of adjustment, (%)
  8. Market Drivers

    • Insurers continue to adapt to the new post-Brexit operating environment
    • IPT rate remains unchanged and consultation maintains the status quo
    • 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
  9. Industry Structure

    • Industry development
    • The number of businesses operating in the non-life insurance industry continues to rise, whilst the number of outlets declines
      • Figure 28: Analysis of the changes in the structure of the non-life insurance industry, 2017-21, (number of outlets and businesses)
    • Structure by employment
      • Figure 29: Analysis of the employment structure of the non-life insurance industry, 2020 and 2021, (number of employees and outlets)
    • Structure by turnover
      • Figure 30: Analysis of the financial structure of the non-life insurance industry, 2020 and 2021, (£000 and number of businesses)
  10. Competitive Strategies

    • Zurich UK launches ‘industry-first’ flood resilience drive and toolkit
    • ERS launches full-cycle API trading with Verex Group
    • Aioi Nissay Dowa and Flock partner to change fleet insurance pricing and distribution
    • FloodFlash bolsters relationship with Munich Re
    • Zego launches flat-rate policy for high-demand fleet businesses
  11. Company Profiles

    • Property insurance
    • Aviva
      • Figure 31: Financial analysis of Aviva, 2016-20, (£ million)
    • AXA
      • Figure 32: Financial analysis of AXA, 2016-20, (£ million)
    • Hiscox
      • Figure 33: Financial analysis of Hiscox, 2016-20, (£ million)
    • Zurich
      • Figure 34: Financial analysis of Zurich, 2018-20, (£ million)
    • Motor insurance
    • Admiral Group plc
      • Figure 35: Financial analysis of Admiral Group plc, 2016-20, (£ million)
    • Covéa Insurance
      • Figure 36: Financial analysis of Covéa Insurance, 2016-20, (£ million)
    • ERS Insurance
      • Figure 37: Financial analysis of ERS Syndicate Management Limited, 2016-20, (£ million)
    • NFU Mutual
      • Figure 38: Financial analysis of NFU Mutual, 2016-20, (£ million)
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  13. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
    • Property insurance
      • Figure 39: The UK market for commercial property insurance, in GWPs, 2021-2026, (£ million)
    • Motor insurance
      • Figure 40: The UK market forecast for commercial motor insurance, in GWPs, 2021-2026, (£ million)
    • Market drivers and assumptions
      • Figure 41: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology
  14. 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.

Consumer

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

Brand/Company

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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