Published : Jan-2020
No. of Pages : 38
1. EXECUTIVE SUMMARY
1.1. The employers' liability market hinges on the strength of the UK economy
1.2. Key findings
1.3. Critical success factors
2. MARKET DYNAMICS
2.1. Introduction
2.2. At the beginning of 2019 there were 1.4 million employing businesses in the UK
2.2.1. Micro businesses have grown the most over the past seven years
2.2.2. Wales saw the largest growth in the number of employing businesses at the start of 2019
2.2.3. Specialist insurers may face challenges as growth rates vary considerably across industries
2.3. The employers' liability market has marginally decreased since 2014
2.3.1. Changes to the Ogden rate will continue to affect premiums
2.4. Employers' liability recorded its highest ever underwriting profit
2.5. Claims numbers continue to fall following a pre-LASPO surge
2.5.1. Workplace injuries continue to fall as safety standards improve
2.6. Personal injury market reforms will impact employers' liability claims
2.6.1. Proposed changes to the Ogden rate will drive claims costs in the employers' liability market
2.6.2. Changes to the small claims track limit will have a negligible impact on employers' liability
2.6.3. Insurers need to be alert to CMC activity as the Civil Liability Bill will shift CMCs' focus
3. COMPETITOR DYNAMICS
3.1. Introduction
3.2. All the top players in the liability market strengthened their position
3.2.1. The degree of competitiveness in the market has fallen
3.2.2. Competitiveness in the SME landscape is a bit stronger
3.2.3. AIG Europe aims to provide a more comprehensive employers' liability product
3.2.4. AXA introduced a wellness element to its employers' liability product
4. THE MARKET GOING FORWARD
4.1. Employers' liability is forecast to continue growing despite Brexit-related uncertainty
4.2. A number of factors will influence the growth of the market
4.2.1. Trade negotiations will heavily influence the UK's economy post-Brexit
4.2.2. Online shopping reduces the need for in-store employees, but opens up demand for new insurance products
4.2.3. The expanding gig economy could help grow the employers' liability market
4.2.4. Personal injury claims could become a concern for the profitability of the market
4.2.5. Wearable tech could make the workplace even safer
5. APPENDIX
5.1. Abbreviations and acronyms
5.2. Definitions
5.2.1. SME
5.3. Methodology
5.3.1. UK Top 20 General Insurance Competitor Analytics methodology
5.3.2. GlobalData's UK SME Insurance Surveys
5.4. HHI
5.5. Forecasting methodology
5.6. Secondary sources
5.7. Further reading
List of Tables
Table 1: The number of employing private sector businesses and employment in the UK, 2012-18
Table 2: The number of UK private sector businesses by number of employees, 2012-18
Table 3: The number of private sector employees and businesses by industry, 2018
Table 4: Growth rate of private sector businesses and employees by industry, 2017-18
Table 5: Employers' liability ratios, 2013-18
Table 6: Total number of personal injury claims in the employers' liability market, 2010-19
Table 7: Total number of fatalities and injuries in the workplace, 2012-19p
Table 8: Total number of injuries spilt by severity, 2012-19p
Table 9: The UK's top general liability insurers by GWP (£000s), 2017-18
Table 10: Measures of competition in the total liability market, 2016-18
Table 11: Employers' liability market GWP forecasts, 2018-23f
List of Figures
Figure 1: The key drivers of the employers' liability market continue to increase
Figure 2: Growth in the number of private businesses is focused in London
Figure 3: Growth in the number of businesses outpaces growth in the number of employees
Figure 4: The employers' liability insurance market continues to fluctuate
Figure 5: The employers' liability market moved into profitability in 2017
Figure 6: The number of recorded claims has seen a long-term decline
Figure 7: The average claims cost has remained steady in recent years
Figure 8: The number of non-fatal workplace injuries is in long-term decline
Figure 9: All types of injuries have continued to decline year on year
Figure 10: AIG strengthened its position as market leader in 2018
Figure 11: Aviva is the most popular provider among SMEs
Figure 12: Growth in the employers' liability market will continue to fluctuate
Figure 13: Forecasting methodology
