UK Non-Life Insurance Segment is in Process of Consolidation, According to Timetric
30 May 2012 • by Natalie Aster
The UK non-life insurance segment was supported by stable growth in the property market, rising motor insurance premiums, an increase in household insurance costs and mandatory motor third-party liability insurance. The presence of such factors helped maintain growth rates in the UK non-life insurance segment during the global financial crisis. As the UK’s economy recovers, the non-life insurance segment is expected to register a higher-growth rate as compared to the review period.
In addition, the industry is also expected to be driven by the increased levels of risk awareness and preparation for risk avoidance among the UK consumers. Growth in the UK property market, the forthcoming London 2012 Olympic Games, an increase in automobile production, rising levels of disposable income and emerging employment opportunities are expected to drive the growth of non-life insurance segment over the forecast period. Property insurance accounted for the largest market share of the UK non-life insurance segment followed by motor insurance in 2011, a situation which is expected to continue over the forecast period.
According to the report “Non-Life Insurance in the UK, Key Trends and Opportunities to 2016” by Timetric, the UK’s infrastructure market registered a weak growth rate during the review period. However, government initiatives and the forthcoming London 2012 Olympic Games are expected to propel growth over the forecast period. The UK government has announced that it will invest GBP500 million into its depressed construction industry over the forecast period under the National Infrastructure Plan. Aside from infrastructure, the UK automobile industry, which increased 5.8% in terms of production in 2011 compared to 2010, is also expected to drive the motor insurance category over the forecast period.
Non-Life Insurance in the UK, Key Trends and Opportunities to 2016
Published: May, 2012
Price: US$ 1.950,00
The UK government took various steps to stabilize the automobile industry during the review period. As a part of such initiatives tax benefits were granted to people selling their old cars. Such measures are expected to support growth in the motor insurance category over the forecast period.
The UK non-life insurance segment is in a process of consolidation. A growing number of mergers and acquisitions (M&As) in the non-life insurance segment due to the introduction of Solvency II legislation have established the conditions for such consolidation. Consequently, there were two large M&As in 2011: Swiss Re acquired the Zurich Specialties London, part of Zurich Financial Services Group while Syndicate Holding Corp. acquired HSBC Insurance (UK).
More information can be found in the report “Non-Life Insurance in the UK, Key Trends and Opportunities to 2016” by Timetric.
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