DUBLIN--(BUSINESS WIRE)--The "UK Home Insurance Market 2019: Market Trends Report" report has been added to ResearchAndMarkets.com's offering.
Home insurance gross written premiums (GWP) will reach around 7.5 billion in 2018, a rise of around 4% on the previous year. Consumer expenditure, as opposed to GWP, rose by 6.9% in 2018, however, excluding the impact of premium inflation on the figures, then expenditure rose by only 1.4%.
Between 2018 and 2023, the author predicts that home insurance GWP will rise by a steady, if unspectacular amount, averaging around 3% per year. In real terms, once the impact of inflation is considered, premiums are predicted to rise by around 1% per annum. Intense price competition will keep growth relatively subdued.
Key factors influencing the market today are:
- The continued rise in household numbers and the recent growth in rented accommodation
- The impact of adverse weather events and climate change on claims (e.g. claims for flooding and escape of water)
- The desire for home improvements among home owners and modern construction techniques which are encouraging claims for escape of water and fire
- The growing willingness of households to switch insurers to get lower premiums
- The growing focus of the industry on using InsurTech to improve customer engagement and offer more competitive and tailored prices
- The rise of Insurance Premium Tax in 2017
- The FCA investigation into price discrimination and price walking
- The decline in the number of burglaries but rise in other thefts from the home
- Growing competition which is keeping premium rates keen
This report looks at the domestic home/property insurance market, where home insurance is defined as insurance which covers individuals against the cost of repairing or rebuilding their home or replacing its contents. This report considers the size of the market, recent trends, the major players, forecast for the future and sets out the environmental framework in which insurance is sold today.
Topics Covered
1. Executive Summary
- Over 600 insurers, with brokers the main sales channel
- The number and type of households a primarily market drivers
- As are weather, crime and building techniques
- Customer engagement and InsurTech of growing importance
- Premium rates and IPT
- The FCA launches an investigation
- Direct Line and Aviva lead the market
- A market valued at over 7 billion
- Little growth predicted in the future
- As competition squeezes premium rates
2. Introduction
- Abbreviations
3. Market Structure
- Direct route or via brokers
- Over 600 insurers
- Two channels to market
4. Market Developments and Drivers
- Almost 28 million homes to insure
- And most take out home insurance
- Ownership tend to rise with age and affluence
- But the structure of dwellings has changed
- Weather and climate a major issue
- New building and home improvements increase risks
- Burglaries declining
- But they remain highly seasonal
- The industry tries to make it an easy buy
- But the FCA feels it must act to encourage a change of behaviour
- InsurTech a growing feature of developments
- InsurTech to make purchasing easier and quicker
- Alexa where can I buy insurance? Try Amazon
- InsurTech to make the claim process easier and less painful
- The rise of Insurer Hosted pricing
- On demand home insurance
- Insurance Premium Tax hits premium costs, but
- Some say premiums have fallen over 2018
- But others disagree
- Home owners are getting itchy feet
- But that doesn't mean they haggle much on price or buy very carefully
5. The Key Players
- Direct Line and Aviva lead the market
- Admiral Group
- Allianz Insurance
- Ageas
- Axa Insurance UK
- Aviva
- BGL (Holdings) Ltd.
- Co-op
-
Covea Insurance PLC
- Direct Line Group
- esure Group
- Lloyds Banking Group
- Liverpool Victoria Friendly Society (LV=)
- Legal & General
- RSA
- Zurich
6. Market Size and Trends
- Home insurance market worth over 7 billion in GWP
- But consumer spend only around 4 billion in insurance
7. The Future
- GWP predicted to rise by almost 17%
- But this implies very little real growth
- Average premium per household to rise by 12%
- A difficult short-term outlook
8. Associations
For more information about this report visit https://www.researchandmarkets.com/research/vf64wd/united_kingdom?w=4
