Market Research Report
UK Private Motor Insurance: Market Dynamics & Opportunities 2017
|Published by||GlobalData||Product code||362412|
|Published||Content info||63 Pages
|UK Private Motor Insurance: Market Dynamics & Opportunities 2017|
|Published: August 15, 2017||Content info: 63 Pages||
Private motor insurance market grew significantly in gross written premiums (GWP) in 2016. This was due to increasing premiums, which reached a record high because of an insurance premium tax (IPT) rise, increasing car repair costs, and the change of the personal injury discount rate from 2.5% to -0.75%. The latter move resulted in higher claims costs for insurers, which impacted their profitability; they responded by raising premiums.
The last decade has been challenging for the private motor insurance market. Regulators and insurers have fought to reduce claims costs and pass on savings to customers, but with little luck as the market has adjusted to the post-LASPO era. Premiums have been rising and have hit record highs due to rises in IPT and the change of the personal injury discount rate. The market is now seeing a wave of tighter legislation to reduce claims costs. Reforms aim to disrupt the role claims management companies (CMCs) and solicitors play in encouraging claims and confront the UK's whiplash epidemic. However, with current political and economic uncertainty the next few years will be a pivotal time.
In 2015, comprehensive policies accounted for 93.2% of the market, whereas non-comprehensive and motorcycle held 5.5% and 1.3% shares respectively as per our UK General Insurance Competitor Analytics. Providers have been exiting the non-comprehensive motor insurance market for some time. Since the majority of claims costs associated with motor insurance come from third-party involvement in a claim, it is no longer viable for insurers to offer basic third-party cover as opposed to fully comprehensive cover. This has resulted in non-comprehensive policies losing market share in the private motor insurance space.
Critical success factors include -
The report "UK Private Motor Insurance: Market Dynamics & Opportunities 2017" analyzes the UK private motor insurance market, looking at market size as well as changes in premiums, claims, road casualties, the motor parc, regulations, and opportunities. It discusses competitors in the market, how the market is likely to change due to telematics and driverless cars, and provides future forecasts of market size up to 2021.
Companies mentioned in this report: Admiral, Aviva, Direct Line, LV=, Allianz, Ageas.