United Kingdom (UK) Employers Liability Insurance Market Size, Trends, Competitor Dynamics and Opportunities

Abstract

This report tracks the health and shape of the employers' liability market - taking into account market size, profitability, performance ratios, and the claims environment. The UK's economic growth, business landscape, and COVID-19 are all taken into consideration to build a full picture of this space. Key shifts in the market and likely future changes are analyzed for impact across all relevant stakeholders.

This market is more closely aligned to developments in the UK economy compared to other insurance lines. As the economy began to recover from the pandemic in 2022, the employers' liability market was estimated to have grown by 7.1%, with inflation, in particular, a key factor. However, the reliance on the economy is problematic for the sector, as the UK is likely headed towards a recession, which will bring the economy to a standstill for much of 2023. The unemployment rate in the UK is increasing as more firms struggle with factors such as inflation and global supply chain issues putting pressure on profitability. The market is directly reliant on the number of businesses and employees in the UK, so this will have a negative impact on premiums.

Scope

• The employers' liability market grew by 19.9% in 2021, with GWP growing to GBP1.53 billion.
• The employers' liability market experienced a strong underwriting profit of GBP119 million in 2021.
• The proportion of non-fatal injuries in the workplace fell by 20.4% between 2013-14 and 2021-22p, leading to fewer claims being made. However, the average claim costs increased by 13.5% from 2020 to 2021.
• AXA is the largest employers' liability insurer for SMEs in the UK, accounting for 9.4% of the market. Chubb became the largest general liability insurer in the UK in 2021, accounting for 9.3% of the market and growing its GWP by 36.6%.
• The market is expected to grow by a further 7.1% in 2022, reaching GBP1.64 billion in GWP, before stabilizing to reach GBP1.87 billion by 2026.

Reasons to Buy

• Understand the context of the UK's economic growth and business landscape - as well as the impact of inflation, the cost-of-living living crisis, and the COVID-19 pandemic - in relation to the employers' liability insurance space.
• Review your strategy against both existing and new challenges in this market.
• Benchmark yourself against the market's experience of market size, growth, performance, and the claims environment.