The total gross insurance premiums in the UK stood at 401.5 billion USD in 2023. From 2013 to 2023, the premiums fluctuated significantly, with notable highs and lows. After a drop of 7.92% in 2015, there was a substantial increase of 19.91% in 2016. However, the trend remained volatile with periods of decline and growth. The year-on-year growth was moderate in 2021 and 2022, each below 2%. The compound annual growth rate (CAGR) over the last five years ending in 2023 was -3.14%. For the next five years up to 2028, a CAGR forecast of 1.24% indicates incremental and steady growth, with premiums reaching 434.03 billion USD.
Future trends to watch for:
- Increasing regulatory changes which could impact pricing and profitability.
- Growth in insurtech and digital transformation within the insurance industry.
- Impacts of economic volatility on premium growth and customer behaviour.
- Emerging risks such as cyber threats and climate change influencing insurance products.
- Potential for consolidation within the insurance market impacting competitive dynamics.
