UK Private Motor Insurance: Market Dynamics & Opportunities 2017

2017-08-15
Price :
Published : Aug-2017
No. of Pages : 63

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.

Filed in: Banking & Finance, Insurance
Publisher : GlobalData
More Reports
Title Price Buy Now

Global Wealth Management: Competitive Dynamics

Global Wealth Management: Competitive Dynamics Summary "Global Wealth Management: Competitive Dynamics", report benchmarks the world's leading wealth managers by managed client assets and financial performance. It covers the 34 most prominent institutions, including standalone private banks and wealth managers, as well as competitors that are part of larger universal financial groups. All international wealth managers with over $100bn in private client AUM are featured in the report. At the end of 2016, client assets managed by the world's top private wealth managers had grown by 6.1% to a record $10.2tn. While a welcome return to growth after 2015's lackluster performance, the growth was fueled more by higher asset prices and the general appreciation of HNW assets rather than str......
$3450

Payments in Denmark 2017: What Consumers Want

Payments in Denmark 2017: What Consumers Want Summary "Payments in Denmark 2017: What Consumers Want", report examines the consumer payments market in Denmark, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. The report also examines the main regulatory players overseeing the market. The Danish cards and payments industry is well-developed, and its consumers are prolific users of payment cards. The country has the highest frequency of use in the world, with 210 transactions per card in 2017. As cash use continues to decline, Denmark is increasing its efforts to become a cashless society, backed by government support promoting electronic payments. Danish consumers are very comfortable with payment cards......
$3450

Payments Landscape in Denmark: Opportunities and Risks to 2021

Payments Landscape in Denmark: Opportunities and Risks to 2021 Summary GlobalData's "Payments Landscape in Denmark: Opportunities and Risks to 2021", report provides detailed analysis of market trends in the Danish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, direct debit, payment cards, and cheques during the review-period (2013-17e). The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2017-21f). It also offers information on the country's competitive landscape, including the market share......
$2750

UK Pet Insurance: Distribution & Marketing 2017

UK Pet Insurance: Distribution & Marketing 2017 Summary "UK Pet Insurance: Distribution & Marketing 2017", explores consumer purchasing behavior and how consumer preferences are changing over time. The report discovers what is most influential to customers when purchasing a policy and also reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years. The purchasing preferences of pet insurance customers have shifted even further towards the direct channel in 2017. Within our UK Insurance Consumer Survey, direct to insurer has increased in popularity by over 20 percentage points for both cats and dogs. While perhaps a less obvious fit, a presence on price comparison si......
$1295

Payments in Sweden 2017: What Consumers Want

Payments in Sweden 2017: What Consumers Want Summary "Payments in Sweden 2017: What Consumers Want", report examines the consumer payments market in Sweden, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. The report also examines the main regulatory players overseeing the market. Swedish consumers are prolific payment card users. Average monthly card transaction volume is higher in Sweden than in other mature European markets such as the UK and Germany, although it lags behind its neighbors Denmark and Estonia. Payment card use in Sweden has been driven by concerted efforts by the government and banks, and consumer willingness to adopt them. As a result, payment cards are gradually replacing cash, and are n......
$3450

Payments Landscape in Sweden: Opportunities and Risks to 2021

Payments Landscape in Sweden: Opportunities and Risks to 2021 Summary GlobalData's "Payments Landscape in Sweden: Opportunities and Risks to 2021", report provides detailed analysis of market trends in the Swedish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, direct debit, payment cards, and cheques during the review-period (2013-17e). The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2017-21f). It also offers information on the country's competitive landscape, including the market shares of is......
$2750

Payments in the Netherlands 2017: What Consumers Want

Payments in the Netherlands 2017: What Consumers Want Summary "Payments in the Netherlands 2017: What Consumers Want", report examines the consumer payments market in the Netherlands, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. The report also examines the main regulatory players overseeing the market. The Dutch payment cards market is mature, with a high penetration rate of 1.9 payment cards per inhabitant. The market is dominated by debit cards, as consumers perceive them to be more secure, cost-effective, and consumer-friendly. Pay-later card payments are not popular due to a cultural aversion towards debt. Dutch consumers are very comfortable using debit cards - accounting for 90% of the overall tra......
$3450

Payments Landscape in the Netherlands: Opportunities and Risks to 2021

Payments Landscape in the Netherlands: Opportunities and Risks to 2021 Summary GlobalData's "Payments Landscape in the Netherlands: Opportunities and Risks to 2021", report provides detailed analysis of market trends in the Dutch cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, direct debit, payment cards, and cheques during the review-period (2013-17e). The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2017-21f). It also offers information on the country's competitive landscape, including the mar......
$2750

Payments Landscape in China: Opportunities and Risks to 2021

Payments Landscape in China: Opportunities and Risks to 2021 Summary China is the world's largest payment card market in terms of transaction value followed by the US, the UK ($1.1tn), Germany, and France. Cash, however, remains a popular payment instrument among Chinese consumers, especially in rural areas, accounting for 63% of the total payment transaction volume in 2017. One of the primary reasons for the dominance of cash is a consumer preference to keep track of their day-to-day spending. Government and banks have begun to provide basic financial access to the unbanked population by expanding banking infrastructure, launching new branches, and making efforts to change consumer payment habits. As a result, payment cards are gradually becoming more accepted, with their use consequen......
$2750

Payments in China 2017: What Consumers Want

Payments in China 2017: What Consumers Want Summary China is the world's largest payment card market in terms of transaction value, accounting for US$13.3tn in 2017. This is followed by the US, the UK (US$1.1tn), Germany, and France. Cash, however, remains a popular payment instrument among Chinese consumers, especially in rural areas, accounting for 63% of the total payment transaction volume in 2017. One of the primary reasons for the dominance of cash is a consumer preference to keep track of their day-to-day spending. High penetration of smartphones and the long history of contactless payments have created a unique opportunity for mobile proximity payments in China. Chinese consumers are accustomed to using mobile phones for payments. In an environment in which e-commerce giants and......
$3450