UK Commercial Motor Insurance: Competitor Dynamics
London (PRWEB) November 18, 2013 -- The commercial motor insurance market remains unprofitable and under pressure to see through sufficient rate increases. Reported year COR for the line presented a better picture in 2012, reflected in improving operating ratios for eight of the top 10 insurers. However, reserve releases played a significant role in this, with underlying market performance found to be slightly weaker than in 2011.
Scope
-Gauge the performance of the top commercial motor insurers by GWP growth and market share across fleet and non-fleet segments.
-Gain insight into which market players have achieved sustainable growth, with analysis of combined, loss, commission, and management cost ratios.
-See which insurers were the most selected provider for commercial motor insurance by surveyed brokers and SME businesses.
Highlights
A majority of the commercial motor insurance market’s top 10 competitors by GWP were unable to achieve CORs below 100% in 2012. Only Direct Line Group (with a COR of 61.9%) and Allianz (80.6%) succeeded in this task.
Direct Line Group continues to lag in comparison to the top 10 on expense ratio, which in 2012 remained the highest among this group at 36.7%.
Allianz continued to improve COR figures with reserve releases in 2012, but this bolstered a fundamentally profitable book, with underwriting profit increasing.
Reasons to purchase this report
-Which companies were the top players in the commercial motor insurance market in 2012?
-How profitable were the top commercial property insurers in 2012?
-In which areas of performance have the top 10 insurers improved and where is further action needed in 2013?
EXECUTIVE SUMMARY
•The top 10 commercial motor insurers account for two thirds of the market
•Eight of the top 10 insurers were unable to secure profitable CORs in 2012
•DLG achieved an impressive 2012 COR driven by reserve releases
Competitor Focus
•The top 10 commercial motor insurers account for two thirds of the market- Total GWP for the top 10 insurers increased by 6.6% in 2012
-Aviva, RSA, Allianz, and NFU Mutual have remained the top four insurers since 2009
-It was a mixed picture for the market’s top 11–20 commercial motor insurers
•RSA is the largest fleet insurer while QBE has the greatest share of non-fleet- RSA and Aviva together account for over one third of the fleet market
-QBE is secure as the largest commercial non-fleet insurer by GWP
•Only Allianz and DLG posted sub-100% CORs in the top 10 - Eight of the top 10 insurers were unable to secure profitable CORs in 2012
-DLG achieved an impressive 2012 COR driven by reserve releases
-Allianz maintained a healthy sub-100% COR in 2012
-RSA’s motor book performance has suffered from a single large contract
-AXA stood out in 2012 for its combination of GWP growth and COR improvement
•Aviva is the most popular insurer for brokers placing all types of commercial motor cover- Nearly one third of surveyed brokers place fleet cover with Aviva
•AXA was the insurer of choice for SMEs purchasing fleet cover in 2012- Most SMEs purchasing fleet insurance used AXA, while Aviva was the most selected insurer for non-fleet
Appendix
•Abbreviations and acronyms
•Definitions- Accident year combined ratio
-Brokers
-Direct insurer/writer
-Earned premiums
-Gross premium
-Net premium
-Reported year combined ratio
-Reserve development
-Written premiums
•Methodology- Primary and secondary research
-Datamonitor's 2012 SME Insurance Survey
-Datamonitor's 2012 Commercial Broker Survey
•Further reading
LIST OF TABLES
•Table: Top 10 commercial motor insurers by GWP (£000s), 2011–12
•Table: Top 11–20 commercial motor insurers by GWP (£000s), 2011–12
•Table: Top 10 commercial fleet insurers by GWP (£000s), 2011–12
•Table: Top 10 commercial vehicle (non-fleet) insurers by GWP (£000s), 2011–12
•Table: Top 10 commercial “other” vehicle insurers by GWP (£000s), 2011–12
•Table: Ratio performance of the top five commercial motor insurers, 2012
•Table: Ratio performance of the top six to 10 commercial motor insurers, 2012
•Table: Top 10 commercial motor insurers’ GWP growth and COR improvement, 2012
•Table: Reserve releases significantly improved DLG’s reported year COR
•Table: Allianz again achieved a healthy commercial motor COR in 2012
•Table: RSA’s underwriting profit slipped further downward in 2012
•Table: AXA improved COR and achieved impressive GWP growth in 2012
LIST OF FIGURES
•Figure: Aviva is the largest commercial motor insurer with 14.3% of the market
•Figure: Eight of the top 10 commercial motor insurers increased GWP in 2012
•Figure: Five insurers within the top 11–20 saw premium growth in 2012
•Figure: RSA remained the largest commercial fleet player for the second year
•Figure: QBE and NFU Mutual continued to lead the non-fleet market
•Figure: NFU Mutual led the “other” commercial motor market by GWP in 2012
•Figure: Allianz was the only top five competitor to achieve a sub-100% COR in 2012
•Figure: DLG posted a healthy COR in 2012 but its expense ratio remains high
•Figure: AXA stood out in 2012 for twinning GWP growth with COR improvement
•Figure: Nearly one third of surveyed brokers place fleet cover with Aviva
•Figure: Aviva, RSA, and AXA are selected by most brokers for small vehicle cover
•Figure: Aviva dominates broker selection for large commercial vehicle cover
•Figure: In 2012 AXA toppled Aviva as the most selected fleet insurer among SMEs
•Figure: Aviva was the most selected non-fleet commercial vehicle insurer among SMEs
Companies Mentioned
AXA, Bunzl plc, Business Integration Services Ltd., General Mills, Inc., Hutchison 3G UK Limited, Informa plc, National Westminster Bank Plc.
Read the full report:
UK Commercial Motor Insurance: Competitor Dynamics
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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