New report from Research and Markets could be interesting reading over the festive season, given that studying a wine list, restaurant menu or NYE party options is out of the window.
The “United Kingdom Motor Insurance Market – Growth, Trends, and Forecast (2020-2025)” report has been added to ResearchAndMarkets.com’s offering.
The United Kingdom Motor Insurance Market is estimated to grow at a CAGR of approximately 4% during the forecast period.
The GBP 515 million underwriting profit of motor insurance in 2018 was a significant increase from the GBP 258 million underwriting profit in 2017. Motor insurance net written premium was 10,097 GBP million and net claims of motor insurance were 7,011 GBP million in 2018. In 2018, insurance penetration (gross written premiums as a percentage of GDP) increased by 0.21 of percentage points to 7.46% and ranged from 0.5% in Liechtenstein to 14.3% in the United Kingdom. Motor premiums fell GBP 24 through the first three quarters of 2018. Brexit has affected non-life insurers. Despite existing regulatory challenges and geopolitical uncertainty, an uptick in interest rates and historically low unemployment are likely to support steady market demand.
Key Market Trends
Recover in Underwriting of Motor Insurance:
This data reveals the United Kingdom’s (UK) motor insurance market’s annual underwriting profit or loss from 2008 through 2018. 2017 and 2018 are the only years that have made a profit in the years listed, other than 2015. The 2018 underwriting profits stood at 515 million pounds in the UK. During this time period, the highest underwriting loss was seen in 2010 when motor insurance firms announced an annual underwriting loss of almost 1.8 billion GBP. Motorists are legally obliged to hold a valid insurance policy to cover third party risks. In 2018, over 27 million UK motor insurance policies were written for premiums of just over Euro 13bn.
In the United Kingdom (UK) between 2015 and 2019, consumer adoption of fintech companies and products grew rapidly. The UK has a higher adoption rate as of 2019 relative to the 64% global average. One reason for the outstanding adoption of fintech products, particularly between 2017 and 2019, is that more incumbent banks and financial services companies have started offering fintech products globally.
The report covers the major players operating in the UK Motor Insurance Market. The market is Fragmented, the market is expected to grow during the forecast period due to the adoption of insurtech in the industry, and slightly recover in underwriting.