1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends

UK Private Motor Insurance: Market Dynamics & Opportunities 2017

  • August 2017
  • 63 pages
  • GlobalData
Report ID: 5082291

Summary

Table of Contents

Search Inside

UK Private Motor Insurance: Market Dynamics & Opportunities 2017

Summary
Private motor insurance market grew significantly in gross written premiums (GWP) in 2016. This was due to increasing premiums, which reached a record high because of an insurance premium tax (IPT) rise, increasing car repair costs, and the change of the personal injury discount rate from 2.5% to -0.75%. The latter move resulted in higher claims costs for insurers, which impacted their profitability; they responded by raising premiums.

The last 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 market has adjusted to the post-LASPO era. Premiums have been rising and have hit record highs due to rises in IPT and the change of the personal injury discount rate. The market is now seeing a wave of tighter legislation to reduce claims costs. Reforms aim to disrupt the role claims management companies (CMCs) 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, comprehensive policies accounted for 93.2% of the market, whereas non-comprehensive and motorcycle held 5.5% and 1.3% 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 associated 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 comprehensive 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 help customers save on premiums - With premiums rising, insurers should look towards non-standard motor insurance policies such as telematics, car sharing, and usage-based policies to help customers reduce their premiums.
- Insurers must learn from LASPO - As claims costs begin to fall from the impact of new 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 key if insurers are to remain competitive as driverless vehicles begin to enter the motor parc.

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

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

Scope
- GWP for the private motor insurance market grew by 12.4% to £12.2bn in 2016.
- Bodily injury claims are the highest 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 12.4% and 12.1% respectively in 2015.

Reasons to buy
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- 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
  • 60 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.

Veronica helps you find the right report:

Testimonials

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
Ikea

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
Ingredion

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

Purchase Reports From Reputable Market Research Publishers

UK SME Adoption of Employee Benefits 2017

  • $ 7500
  • Industry report
  • September 2017
  • by GlobalData

UK SME Adoption of Employee Benefits 2017 Summary "UK SME Adoption of Employee Benefits 2017", report highlights the opportunities in offering employee benefits by sizing the number of SMEs in the UK. ...

Implementing Cognitive Systems in Insurance Organizations

  • $ 4500
  • Industry report
  • July 2017
  • by IDC

This study is intended to help business and IT executives in insurance organizations (insurers and intermediary organizations) understand what cognitive systems are, why they are relevant, and how they ...

Kidnap and Ransom Insurance in Latin America and Africa

  • $ 3800
  • Industry report
  • September 2017
  • by Timetric

Synopsis Timetric’s Insight Report: Kidnap & Ransom Insurance in Latin America and Africa analyzes the evolution and expansion of kidnap and ransom insurance in Latin America and Africa. Kidnapping has ...


ref:plp2017

Reportlinker.com © Copyright 2017. All rights reserved.

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