DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/3b679b/uk_commercial_insu) has announced the addition of the "UK Commercial Insurance Distribution 2011" report to their offering.
This report gives a comprehensive analysis of distribution in the UK commercial insurance market. It explores issues including the growth of direct insurers in commercial insurance and the acquisitions occurring between commercial insurance brokers. The report also includes data and insight into SME purchasing behavior, broker consolidation and the latest activity of the managing general agents.
Features and Benefits:
- Insight into the latest issues affecting the commercial insurance market and the impact these are having on distribution.
- The latest data on SMEs purchasing behaviour, managing general agents and broker consolidation in the UK commercial insurance market.
Highlights:
- The results indicate that SMEs are increasingly open to purchasing cover online fuelling an increase in insurance cover being provided directly to SMEs. However, there exists a clear correlation between the size of an SME and the propensity to purchase cover online, indicating the continued value assigned to brokers bespoke advice.
- Consolidation in the market has been muted in comparison to previous years as brokers look to reduce net debt levels and capital funding in the market remains suppressed. Acquisitions have been increasingly targeted at increasing exposure in specialist or regional markets as opposed to increasing GWP volume.
Your Key Questions Answered:
- What are the past and forecasted commercial insurance distribution trends in the UK?
- What factors are influencing SMEs commercial insurance purchases?
- What have been the chief issues affecting commercial insurance distribution and what factors will affect it going forward?
Key Topics Covered:
Executive Summary
- The commercial insurance market experienced modest growth
- Distribution channels are expected to have stayed fairly constant
- The broker channel is forecast to decline, while the direct channel will become more popular
Market Context
- The commercial insurance market experienced modest growth
- Growth in the number of small and medium-sized enterprises slowed in 2008 and 2009 as the recession impacted the number of new enterprises
Distribution Dynamics
- Distribution channels are expected to have stayed fairly constant
- Brokers are looking to expand their business, although fewer are looking to consolidate
- Many brokers joined a broker club or network in order to gain access to more insurers
Customer Focus
- Despite changes in technology, face-to-face brokerage is the most popular form of commercial insurance arrangement
- Price remains the most important factor in the choice of commercial insurance provider
- More than a third of SMEs do not receive extra services from their commercial insurer
- Premium pricing is the main driver of provider-switching among SMEs
- The number of SMEs that intend to change their provider has decreased since
- An increasing proportion of SMEs are open to telephone or online policy arrangement
- The majority of SMEs that would not use the telephone or Internet retain the desire to arrange insurance face-to-face
- Employers' liability insurance was the most likely to be arranged online or via the telephone
- SMEs are considerably more inclined to purchase commercial insurance from a direct insurer rather than a bank or building society
- Many SMEs are happy arranging their policies via brokers and will maintain this strategy
Competitive Dynamics
- Consolidation activity among brokers slowed in 2010 compared to previous years
- Insurers are continuingly improving their offerings in a bid to gain ground in the SME sector
- Use of technology is starting to pick up steam as a means of facilitating distribution
- Broker networks and MGAs have expanded their market share
- Multinational brokers hold the lion's share of the UK commercial insurance market
- National brokers
The Future Decoded
- The broker channel is forecast to decline, while the direct channel will become more popular
- The market share for brokers is forecast to decrease to 80% by
- Direct insurance providers are forecast to increase market share to 12%
- Banks and building societies are forecast to grow their position in the commercial insurance market
- Other company agents are forecast to account for less distribution by 2013, while distribution through company staff will remain static
- No change is expected for corporate partnerships
For more information visit http://www.researchandmarkets.com/research/3b679b/uk_commercial_insu
Source: Datamonitor