1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
UK Private Motor Insurance: Market Dynamics & Opportunities 2017

UK Private Motor Insurance: Market Dynamics & Opportunities 2017

  • August 2017
  • 63 pages
  • ID: 5082291
In this report:
According to Thatcham Research, the cost of the average vehicle repair bill has increased by ##% to £##,## over the last three years due to the rising complexity of vehicle repairs and the higher cost of replacement car parts caused by advanced driver assistance systems.
According to Consumer Intelligence, over ##% of the five cheapest new business quotes across price comparison sites and the direct channel were from telematics providers, compared to only ##% in October 2013.


Table of Contents

Search Inside

UK Private Motor Insurance: Market Dynamics & Opportunities 2017


Private motor insurance market grew significantly in gross written premiums in 2016. This was due to growing premiums, which reached a record high because of an insurance premium tax rise, rising car repair costs, and the change of the personal injury discount rate from 2.50 percent to ~-0.7 percent. The latter move resulted in bigger claims costs for insurers, which impacted their profitability; they responded by raising premiums.

The final decade has been challenging for the private motor insurance market. Regulators and insurers have fought to reduce claims costs and pass on savings to customers, but with little luck as the sector has adjusted to the post-LASPO era. Premiums have been growing and have hit record highs due to rises in IPT and the change of the personal injury discount rate. The industry is now seeing a wave of tighter legislation to reduce claims costs. Reforms aim to disrupt the role claims management companies and solicitors play in encouraging claims and confront the UK's whiplash epidemic. However, with current political and economic uncertainty the next few years will be a pivotal time.

In 2015, exhaustive policies accounted for 93.20 percent of the market, whereas non-comprehensive and motorcycle held 5.50 percent and 1.30 percent shares respectively as per our UK General Insurance Competitor Analytics. Providers have been exiting the non-comprehensive motor insurance market for some time. Since the majority of claims costs combined with motor insurance come from third-party involvement in a claim, it is no longer viable for insurers to offer basic third-party cover as opposed to fully exhaustive cover. This has resulted in non-comprehensive policies losing market share in the private motor insurance space.

Critical success factors include -

- Utilize big data to benefit consumers save on premiums - With premiums increasing, insurers should look towards non-standard motor insurance policies including telematics, car sharing, and usage-based policies to benefit clients reduce their premiums.

- Insurers must learn from LASPO - As claims costs begin to fall from the impact of additional reforms, insurers must collectively ensure that market overcapacity does not lead premiums to fall unsustainably low and compromise market profitability in anticipation of savings.

- Prepare for driverless cars - Insurers must consider how insurance will change with driverless technology. Insurers must begin to design dual policies that cover both the driver and the vehicle being in control. Collaboration with car manufacturers is also main if insurers are to remain challenging as driverless vehicles begin to enter the motor parc.

The market research "UK Private Motor Insurance: Market forces & Opportunities 2017" examines the UK private motor insurance market, looking at market size as well as changes in premiums, claims, road casualties, the motor parc, regulations, and alternatives. It discusses competitors in the sector, how the industry is likely to change due to telematics and driverless cars, and provides future forecasts of market size up to 2021.

Firms mentioned in this industry report: Admiral, Aviva, Direct Line, LV=, Allianz, Ageas.


- GWP for the private motor insurance market grew by 12.40 percent to £12.2bn in 2016.

- Bodily injury claims are the more important cost for motor insurers, with the average claim costing £10,799.

- Direct Line and Aviva are the leading private motor insurers, with market shares of 12.40 percent and 12.10 percent respectively in 2015.

Great reasons to purchase

- Ensure you remain ambitious as additional innovations and insurance models begin to enter the sector.

- Be prepared for how regulation will impact the private motor insurance market over the next few years.

- Benchmark yourself against competitors.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Digital Insurance Platform Market by Component, End-Users, Insurance Application, Deployment Type, Organization Size And Region - Global Forecast to 2023

Digital Insurance Platform Market: Global Forecast until 2023

  • $ 5649
  • Industry report
  • June 2018
  • by MarketsandMarkets

The digital insurance platform market is expected to grow at a CAGR of 13.7% during the forecast period.The digital insurance platform market size is expected to grow from USD 86.20 billion in 2018 to ...

Insurance and Pension Funding in India: ISIC 66

India: Insurance and Pension Funding analysis

  • $ 657
  • Industry report
  • March 2018
  • by Euromonitor International

Euromonitor International’s Industrial reports provide a 360 degree view of an industry. The Industrial market report offers a comprehensive guide to the size and shape of the Insurance and Pension Funding ...

Insurance and Pension Funding in Brazil: ISIC 66

Brazil: Insurance and Pension Funding report

  • $ 657
  • Industry report
  • May 2018
  • by Euromonitor International

The Industrial market report offers a comprehensive guide to the size and shape of the Insurance and Pension Funding market at a national level. It provides the latest retail sales data, allowing you to ...


Reportlinker.com © Copyright 2018. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on