UK Insurance Market Intelligence: 2011 Edition
The insurance industry, as a major contributor to the economy, is central to the financial service sector of the UK. The country boasts the largest insurance industry across the EU region, and ranks among the top five insurance markets worldwide. The insurance sector experienced substantial growth in income and profitability during 2007; however, the global financial crisis significantly affected the UK insurance industry. Post the economic slowdown, the industry registered high decline in the growth rate for two consecutive years, 2008 and 2009.
Both life and non-life segments witnessed decline in premium growth resulting from the low capital levels, fall in asset value, and uncertain market conditions due to the economic crisis. Further, the global economic recession resulted in some long-term structural changes in the industry as well as commerce in the wider economy. Given the recessionary conditions, the incidence of fraud, both in terms of volume and augmented claims size, became more prevalent and increased pricing pressure in the non-life segment.
Though at a slower rate, the recovering economy seems to result in certain positive for the UK insurance sector. Moreover, with regulatory development implementation and government initiative to boost the growth in various segments and sub segments of insurance industry, the landscape for insurers is expected to be positive with significant opportunities in long term.
Both life and non-life segments witnessed decline in premium growth resulting from the low capital levels, fall in asset value, and uncertain market conditions due to the economic crisis. Further, the global economic recession resulted in some long-term structural changes in the industry as well as commerce in the wider economy. Given the recessionary conditions, the incidence of fraud, both in terms of volume and augmented claims size, became more prevalent and increased pricing pressure in the non-life segment.
Though at a slower rate, the recovering economy seems to result in certain positive for the UK insurance sector. Moreover, with regulatory development implementation and government initiative to boost the growth in various segments and sub segments of insurance industry, the landscape for insurers is expected to be positive with significant opportunities in long term.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Life and Pension, Health, General Insurance and Wholesale Insurance as Main Sectors
1.1.2 Expansion of services by insurance companies
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Life insurance contributed the highest premium
1.2.1.2 Decline in total insurance premiums due to global economic slowdown
1.2.1.3 UK Insurance industry stood third in terms of premiums in the world
1.2.2 Market Segments
1.2.2.1 Removal of tax advantages on unit-linked bonds affected growth of life insurance
1.2.2.2 Sharp rise in non-life insurance claims and underwriting losses
1.2.2.3 Pension including individual and occupational account for highest premium share
1.2.3 Market Density & Penetration
1.2.3.1 Highest insurance penetration in European region
1.2.3.2 Global economic slowdown affecting insurance density
1.2.4 Market Share
1.2.4.1 RBS Leads non-life insurance market
1.2.4.2 Increase in combined ratio in 2009 compared to 2008
1.2.4.3 AXA posted fall in premiums in 2009
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Solvency II and Related Considerations
UK Insurance Industry Anticipates Series of Mergers and Acquisitions
Resolution on Acquisition Spree
Environmental Damage (Prevention and Remediation) Regulations 2009
FSA Statement on Wordings used in General Insurance Contracts
Developments on Floods and Water Management Bill
2.2 Market Drivers
GDP Growth and Recovery in Financial Markets
Rising Car Insurance and Insurance Premiums
Property Insurance Premiums
Growing Life insurance Segment
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slower growth expected in premiums growth in future years
4.2 Implementation of pension reforms in 2012 will affect consumer’s retirement savings plans
1.1 Industry Structure
1.1.1 Life and Pension, Health, General Insurance and Wholesale Insurance as Main Sectors
1.1.2 Expansion of services by insurance companies
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Life insurance contributed the highest premium
1.2.1.2 Decline in total insurance premiums due to global economic slowdown
1.2.1.3 UK Insurance industry stood third in terms of premiums in the world
1.2.2 Market Segments
1.2.2.1 Removal of tax advantages on unit-linked bonds affected growth of life insurance
1.2.2.2 Sharp rise in non-life insurance claims and underwriting losses
1.2.2.3 Pension including individual and occupational account for highest premium share
1.2.3 Market Density & Penetration
1.2.3.1 Highest insurance penetration in European region
1.2.3.2 Global economic slowdown affecting insurance density
1.2.4 Market Share
1.2.4.1 RBS Leads non-life insurance market
1.2.4.2 Increase in combined ratio in 2009 compared to 2008
1.2.4.3 AXA posted fall in premiums in 2009
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Solvency II and Related Considerations
UK Insurance Industry Anticipates Series of Mergers and Acquisitions
Resolution on Acquisition Spree
Environmental Damage (Prevention and Remediation) Regulations 2009
FSA Statement on Wordings used in General Insurance Contracts
Developments on Floods and Water Management Bill
2.2 Market Drivers
GDP Growth and Recovery in Financial Markets
Rising Car Insurance and Insurance Premiums
Property Insurance Premiums
Growing Life insurance Segment
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slower growth expected in premiums growth in future years
4.2 Implementation of pension reforms in 2012 will affect consumer’s retirement savings plans
LIST OF CHARTS
Annual Premium – The UK Insurance Industry: 2002-2009
UK Insurance Premium Share (%) by Segment – 2009
UK Insurance Premium by Segment – 2002-2009
UK Life Insurance Premium Share (%) by Segment – 2009
UK Non-Life Insurance Premium Share (%) by Segment – 2009
UK Insurance Density (US$): 2002 – 2009
UK Insurance Penetration 2002 – 2009
UK: Major Non-Life Insurer’s Market Share: (2009)
UK: Major Life Insurer’s Market Share: (2009)
UK GDP Growth Rate
UK Percentage Increase for Motor Insurance Cost: May 2009 – 2010
UK Life Insurance - Regular Vs Single Premiums Growth: 2009-2010
Forecast: UK Insurance Industry: 2009A - 2013F
Forecast: UK Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – The UK Insurance Industry: 2002-2009
UK Insurance Premium Share (%) by Segment – 2009
UK Insurance Premium by Segment – 2002-2009
UK Life Insurance Premium Share (%) by Segment – 2009
UK Non-Life Insurance Premium Share (%) by Segment – 2009
UK Insurance Density (US$): 2002 – 2009
UK Insurance Penetration 2002 – 2009
UK: Major Non-Life Insurer’s Market Share: (2009)
UK: Major Life Insurer’s Market Share: (2009)
UK GDP Growth Rate
UK Percentage Increase for Motor Insurance Cost: May 2009 – 2010
UK Life Insurance - Regular Vs Single Premiums Growth: 2009-2010
Forecast: UK Insurance Industry: 2009A - 2013F
Forecast: UK Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES
Top 5 Insurer of General Insurance Market Based on Net Written Premium – 2009
Top 5 Insurer of Life insurance Market Based on Net Written Premium – 2009
UK Car production: 2002-2009
Key Macroeconomic Indicators: (2009 – 2013F)
Top 5 Insurer of General Insurance Market Based on Net Written Premium – 2009
Top 5 Insurer of Life insurance Market Based on Net Written Premium – 2009
UK Car production: 2002-2009
Key Macroeconomic Indicators: (2009 – 2013F)
