Private Motor Insurance in the UK, Key Trends and Opportunities to 2016
London (PRWEB) November 05, 2013 -- Synopsis
The report provides market analysis, information and insights into the UK private motor insurance business. The report provides:
-A snapshot of market size and market segmentation
-Comprehensive analysis of claims, drivers and market outlook
-Analysis of distribution channels
-Deals, news and regulatory developments
-Detailed analysis of changing consumer preferences
Summary
Gross written premiums in the UK’s private motor insurance category rose by 6.7% in 2011, slowing from the expansion recorded in 2010. The market is dominated by comprehensive policies, with some insurers having axed third-party, non-comprehensive policies in the past few years. Private motor insurance gross written premiums represent 0.9% of the country’s GDP, in line with the European average. Motor insurance density in the UK is higher than in its European counterparts, and has followed a clear upward trend. Factors driving growth in the category include mandatory motor third-party liability insurance, rising disposable incomes and a steady increase in private car registrations. The difficult macroeconomic environment is a challenge. A strong return to growth is not expected until 2014, but as this recovery gains traction, premium growth rates in the private motor insurance category are expected to settle around 3%. Adverse factors such as a steep increase in motoring costs and regulatory changes are expected to mitigate growth momentum. Claims paid by private motor insurers have risen by 15% since 2008, in line with an increase in payouts for whiplash claims. The rise has been sharp enough to prompt intervention from the government and a change in the law on referral fees to try and curb the number of personal injury claims. Direct sales remain the main channel for distribution of private motor insurance, but the role of online aggregators has grown rapidly over the last five years. While price comparison websites enhance pricing transparency for consumers, intensified competition for rankings is likely to keep premium rates low. Long-term struggles to achieve profitability have adversely affected car insurers for over a decade. Although 2011 marked a healthy improvement over 2010, low returns on investments and limited premium growth, coupled with high claims payouts, mean profitability is likely to remain elusive.
Scope
-This report provides a comprehensive analysis of the private motor insurance market in the UK:
-It provides historical values for the UK's private motor insurance market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
-It analyses the various distribution channels for private motor insurance products in the UK
-Using Porter’s industry-standard “Five Forces” analysis, it details the competitive landscape in the UK for the private motor insurance business
-It profiles the top private motor insurance companies in the UK and outlines the key regulations affecting them
Reasons To Buy
-Gain an understanding of UK private motor insurance market size
-Learn about the performance of claims, market drivers and distribution channels
-Understand the competitive landscape in terms of performance, profitability and product innovation
-Find out more on key deals and recent developments in the market
-Gain insight into consumer loyalty to brands and the use of price comparison websites
Key Highlights
-Market performance in terms of premium growth has been subdued as the market faces opposing dynamics. Meanwhile, growth in claims has surged.
-Distribution channels have evolved in line with widespread internet usage.
-Investment income and profits have failed to keep up.
-Regulatory changes will have mixed effects on firms operating in the private motor category.
-Consumers continue to seek competitive prices.
-Premium growth is expected to settle at 3% by 2017.
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
3.1 Market Size
3.1.1 Penetration and density
3.1.2 Comprehensive private motor insurance
3.1.3 Non-comprehensive private motor insurance
3.1.4 Motorcycle insurance
3.2 Claims
3.2.1 Rising fraud
3.2.2 Claims outlook
3.3 Market Drivers
3.4 Market Outlook
3.5 Distribution Channels
3.5.1 Distribution outlook
3.6 Reinsurance
4 Competitive Landscape
4.1 Best Performers of 2011
4.2 Profitability
4.2.1 Investment returns
4.2.2 Profitability outlook
4.3 Product Innovation
4.4 Private Motor Insurance – SWOT Analysis
5 Porter’s Five Forces Analysis
5.1 Bargaining Power of Suppliers: Low
5.2 Bargaining Power of Buyers: Medium to High
5.3 Barriers to Entry: Low
5.4 Intensity of Rivalry: Medium to High
5.5 Threat of Substitution: Low
6 Deals
6.1 Axa and Prestige Extend Partnership
6.2 Admiral Moves into the Legal Sector
6.3 Ageas Launches a Legal Partnership
7 News
7.1 Government Proposes Shake-Up of Young Driver Rules
7.2 The Association of British Insurers Breaks Down the Real Cost of Motor Insurance
7.3 Citroën Becomes the First Car Manufacturer to Fit Telematics Box as Standard
7.4 Aviva Introduces Online Customer Feedback
7.5 Axa Closes Branch-based Advice Services
8 Regulation and Compliance
8.1 Recent Changes
8.1.1 Risk selection by gender has been outlawed
8.1.2 Continuous insurance requirements
8.1.3 Consumer Insurance (Disclosure and Representations) Act
8.2 New Regulations for 2013
8.2.1 Referral fees eliminated
8.2.2 Solvency II
8.2.3 Competition Commission investigation
9 Consumer Perspective
9.1 Brand Loyalty
9.2 Price Comparison Websites
10 Macroeconomic Backdrop
10.1 Real GDP Growth
10.2 Increase in Sale and Registration of Passenger Cars
10.3 Inflation
10.4 Interest Rates
10.5 Demographics
11 Company Profiles
11.1 Admiral Group Plc – Company Overview
11.1.1 Admiral Group Plc – key facts
11.1.2 Admiral Group Plc – main products
11.1.3 Admiral Group Plc – main competitors
11.1.4 Admiral Group Plc – key employees
11.2 Ageas (UK) Limited – Company Overview
11.2.1 Ageas (UK) Limited – key facts
11.2.2 Ageas (UK) Limited – main products
11.2.3 Ageas (UK) Limited – main competitors
11.2.4 Ageas (UK) Limited – key employees
11.3 Aviva plc – Company Overview
11.3.1 Aviva plc – key facts
11.3.2 Aviva plc – main products
11.3.3 Aviva plc – main competitors
11.3.4 Aviva plc – key employees
11.4 AXA UK plc – Company Overview
11.4.1 AXA UK plc – key facts
11.4.2 AXA UK plc – main products
11.4.3 AXA UK plc – main competitors
11.4.4 AXA UK plc – key employees
11.5 Co-operative Insurance Society Limited – Company Overview
11.5.1 The Co-operative Insurance Society Limited – key facts
11.5.2 The Co-operative Insurance Society Limited – main products
11.5.3 The Co-operative Insurance Society Limited – main competitors
11.5.4 The Co-operative Insurance Society Limited – key employees
11.6 Direct Line Insurance Group plc – Company Overview
11.6.1 Direct Line Insurance Group plc – key facts
11.6.2 Direct Line Insurance Group plc – main products
11.6.3 Direct Line Insurance Group plc – main competitors
11.6.4 Direct Line Insurance Group plc – key employees
11.7 Esure – Company Overview
11.7.1 esure – key facts
11.7.2 esure – main products
11.7.3 esure – main competitors
11.7.4 esure – key employees
11.8 Liverpool Victoria Friendly Society Limited – Company Overview
11.8.1 Liverpool Victoria Friendly Society Limited – key facts
11.8.2 Liverpool Victoria Friendly Society Limited – main products
11.8.3 Liverpool Victoria Friendly Society Limited – main competitors
11.8.4 Liverpool Victoria Friendly Society Limited – key employees
11.9 Royal & Sun Alliance Insurance Plc – Company Overview
11.9.1 Royal & Sun Alliance Insurance Plc – key facts
11.9.2 Royal & Sun Alliance Insurance Plc – main products
11.9.3 Royal & Sun Alliance Insurance Plc – main competitors
11.9.4 Royal & Sun Alliance Insurance Plc – key employees
11.10 Zurich Insurance Plc – Company Overview
11.10.1 Zurich Insurance plc – key facts
11.10.2 Zurich Insurance plc – main products
11.10.3 Zurich Insurance plc – main competitors
11.10.4 Zurich Insurance plc – key employees
12 Statistics
12.1 Review Period
12.2 Forecast Period
13 Appendix
13.1 Methodology
13.2 Contact Us
13.3 About Timetric
13.4 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: UK Private Motor Insurance – Market Summary (GBP Thousand), 2007–2011
Table 3: UK Private Motor Insurance – SWOT Analysis
Table 4: Recent and Upcoming Regulatory Changes
Table 5: Admiral Group Plc, Key Facts
Table 6: Admiral Group Plc, Main Products
Table 7: Admiral Group Plc, Key Employees
Table 8: Ageas (UK) Limited, Key Facts
Table 9: Ageas (UK) Limited, Main Products
Table 10: Ageas (UK) Limited, Key Employees
Table 11: Aviva plc, Key Facts
Table 12: Aviva plc, Main Products
Table 13: Aviva plc, Key Employees
Table 14: AXA UK plc, Key Facts
Table 15: AXA UK plc, Main Products
Table 16: AXA UK plc, Key Employees
Table 17: The Co-operative Insurance Society Limited, Key Facts
Table 18: The Co-operative Insurance Society Limited, Main Products
Table 19: The Co-operative Insurance Society Limited, Key Employees
Table 20: Direct Line Insurance Group plc, Key Facts
Table 21: Direct Line Insurance Group plc, Main Products
Table 22: Direct Line Insurance Group plc, Key Employees
Table 23: esure, Key Facts
Table 24: esure, Main Products
Table 25: esure, Key Employees
Table 26: Liverpool Victoria Friendly Society Limited, Key Facts
Table 27: Liverpool Victoria Friendly Society Limited, Main Products
Table 28: Liverpool Victoria Friendly Society Limited, Key Employees
Table 29: Royal & Sun Alliance Insurance Plc, Key Facts
Table 30: Royal & Sun Alliance Insurance Plc, Main Products
Table 31: Royal & Sun Alliance Insurance Plc, Key Employees
Table 32: Zurich Insurance plc, Key Facts
Table 33: Zurich Insurance plc, Main Products
Table 34: Zurich Insurance plc, Key Employees
Table 35: Private Motor Insurance (GBP Thousand), 2007–2011
Table 36: Private Motor Insurance (GBP Thousand), 2012–2016
List of Figures
Figure 1: Gross Written Premiums for UK Private Motor Insurance, 2007–2011
Figure 2: UK Private Motor Insurance – Penetration Rate and Density, 2007–2011
Figure 3: Comprehensive Private Motor Insurance Gross Written Premiums, 2007–2011
Figure 4: Non-Comprehensive Private Motor Insurance Gross Written Premiums, 2007–2011
Figure 5: Motorcycle Private Motor Gross Written Premiums, 2007–2011
Figure 6: UK Private Motor Insurance – Net Claims Paid and Incurred (GBP Million), 2007–2011
Figure 7: Reported Road Accidents and Motor Compensation Cases Lodged (Thousand), 2006–2011
Figure 8: Gross Written Premiums (GBP Million), 2012–2016
Figure 9: Private Motor Insurance Growth Dynamics by Product (%), 2007–2016
Figure 10: Commissions Paid by Private Motor Insurers in the UK (GBP Million), 2007–2011
Figure 11: Market Shares of the 10 Leading UK Private Motor Insurers (%), 2011
Figure 12: Combined Operating Ratio for Total UK Private Motor Business, 2007–2011
Figure 13: Loss and Expenses Ratio for Total UK Private Motor Business (%), 2007–2011
Figure 14: UK Private Motor Insurance – Five Forces Analysis
Figure 15: The UK’s Insurance Regulatory Framework
Figure 16: Frequency of Car Provider Switches by Consumers
Figure 17: Consumer Considerations When Purchasing Car Insurance
Figure 18: Real GDP Growth (%), 2007–2016
Figure 19: Growth in Private Car Registrations (Million), 2003–2012
Figure 20: Motor-Related Inflation versus Headline Rate (%), 2000–2012
Figure 21: Growing and Aging Population, 1995–2011
Figure 22: Improving Living Standards in the UK (GBP Thousand), 1997–2011
Read the full report:
Private Motor Insurance in the UK, Key Trends and Opportunities to 2016
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: http://www.reportbuyer.com/
Sarah Smith, Research Advisor at Reportbuyer.com, +44 208 816 85 48, [email protected]
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