UK Private Motor Insurance: Market Dynamics and Opportunities 2025

This report analyzes the UK private motor insurance market, looking at drivers of uptake. It discusses the claims landscape in 2024, as well as the motor market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. Future impactors in the market are also examined, including inflation as well as emerging technology such as AI and autonomous vehicles.

GlobalData expects gross written premiums (GWP) in the UK private motor insurance market to fall by 7.6% in 2025, following an increase of 17.0% in 2024. The decline reflects expected premium deflation as insurers respond to easing claims inflation and a stabilization in motor repair and parts costs. As a result, the market will reach a value of GBP16.54 billion by the end of 2025.

Scope

• The average private motor insurance premium climbed to GBP621 in 2024, an increase of 14.2% year over year.
• The number of claims reported declined from 2.51 million in 2023 to 2.31 million in 2024, a reduction of 8.2%.
• The top five insurers accounted for 55.8% of the private motor market in 2024, marking a 0.8 percentage point decline from 2023.

Reasons to Buy

• Determine the underlying factors affecting the private motor insurance market.
• Understand the impact of new regulations on the industry.
• Observe the actions and reactions of incumbent market leaders and insurtech newcomers.
• Understand the effects of the cost-of-living crisis on the private motor market.
• Anticipate new challenges and changes to the market going forward.