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Market Research Report

UK Commercial Motor Insurance: Market Dynamics & Opportunities 2018

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Published Content info 38 Pages
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UK Commercial Motor Insurance: Market Dynamics & Opportunities 2018
Published: September 12, 2018 Content info: 38 Pages
Description

"UK Commercial Motor Insurance: Market Dynamics & Opportunities 2018", report analyzes the UK commercial 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 2022.

The commercial motor market is estimated to have grown by 2.5% in 2017, reaching £4,281m in GWP. This growth has been driven by a combination of factors, including slight economic growth which has boosted consumer and business confidence as well as an increase in the size of the commercial motor parc. Claims in the commercial motor insurance market are affected by the UK's whiplash culture in the same way as the private motor insurance market; the UK government has sought to combat this through the proposed Civil Liability Bill, which is due to come into effect in April 2020. Once the bill is implemented the commercial motor market will likely experience a reduction in both the number and cost of claims, allowing for insurers to lower premiums.

Scope:

  • The UK commercial motor insurance market is estimated to have grown by 2.5% to £4,281m in 2017.
  • Claims notified in the commercial motor insurance market declined in 2017; the incoming Civil Liability Bill is likely to extend this decline further in the coming years.
  • The commercial motor market is forecast to continue growing, breaking through the £5bn threshold in 2022.

Reasons to buy:

  • Keep up-to-date with the new trends and innovations in the market.
  • Benchmark yourself against competitors.
  • Learn about growth in all aspects of the market, what is driving it, and whether it looks set to continue.
Table of Contents
Product Code: FS0154IA

Table of Contents

1. EXECUTIVE SUMMARY

  • 1.1. Market summary
  • 1.2. Key findings
  • 1.3. Critical success factors

2. MARKET DYNAMICS

  • 2.1. Introduction
  • 2.2. Commercial motor market GWP increased in 2017
    • 2.2.1. The total motor insurance market grew by 4.6% in 2017
    • 2.2.2. The number of commercial vehicles continues to increase
    • 2.2.3. The number of miles driven on UK roads continues to rise
    • 2.2.4. Fluctuations in fuel prices will influence market dynamics
    • 2.2.5. Reforms in the claims market have impacted GWP
    • 2.2.6. Increases in insurance premium tax could influence the future market

3. THE CLAIMS LANDSCAPE OF THE COMMERCIAL MOTOR MARKET

  • 3.1. The number of claims remains relatively consistent
    • 3.1.1. Technology is a double-edged sword in the claims landscape
  • 3.2. Personal injury motor claims are set for reform
    • 3.2.1. The Civil Liability Bill is aimed at reforming the motor claims market
    • 3.2.2. Potential changes to the Ogden rate may benefit insurers
    • 3.2.3. The incoming tariff system hopes to limit the cost of claims
    • 3.2.4. Pre-medical offers will no longer be available on RTA whiplash claims
    • 3.2.5. Recorded personal injury motor claims fell by over 100,000 in 2017/18
  • 3.3. The number of RTAs continues to fall
    • 3.3.1. The number of RTAs decreased in 2016 as UK roads have become safer
    • 3.3.2. Technology will reduce the number of accidents on UK roads considerably

4. COMPETITOR DYNAMICS

  • 4.1. The UK commercial motor market was competitive in 2016
    • 4.1.1. Competition in the UK commercial motor market remains strong
    • 4.1.2. The degree of competition in the commercial motor market increased in 2017
    • 4.1.3. RSA was the largest commercial motor insurer in 2016
    • 4.1.4. Allianz is set to expand through its venture with LV=
    • 4.1.5. Aviva has a diverse product offering
    • 4.1.6. AXA is set to grow its commercial motor insurance presence through the acquisition of XL

5. THE FUTURE MARKET

  • 5.1. The commercial motor market is forecast to continue growing
    • 5.1.1. The market is expected to grow year-on-year up to 2022
  • 5.2. Technology will shape the commercial motor market
    • 5.2.1. Telematics-based policies provide numerous benefits for policyholders
    • 5.2.2. Driver aids will help reduce the number of road traffic accidents
    • 5.2.3. Autonomous vehicles will change the market drastically
    • 5.2.4. The future commercial motor market could come under threat from drones
  • 5.3. The growth of the gig economy could help boost the commercial motor market
  • 5.4. The sharing economy is both a threat and an opportunity
  • 5.5. Environmental regulations could lead to increased claims costs

6. APPENDIX

  • 6.1. Abbreviations and acronyms
  • 6.2. HHI
  • 6.3. Forecasting methodology
  • 6.4. Bibliography
  • 6.5. Further reading

List of Tables

  • Table 1: UK motor insurance market GWP and growth rate, 2013-17
  • Table 2: Total number of commercial vehicles in the UK (000s), 2013-17
  • Table 3: New tariffs to be introduced for RTA soft tissue injury claims
  • Table 4: Personal injury motor claims
  • Table 5: GWP and market share of the top 10 providers in commercial motor insurance, 2016 vs 2017
  • Table 6: Measures of competition in the commercial motor market
  • Table 7: The forecasted size of the commercial motor market
  • Table 8: The number of telematics policies live in the UK
  • Table 9: The prevalence of in-car technology, 2017

List of Figures

  • Figure 1: The commercial motor market continued to grow in 2017
  • Figure 2: The number of commercial vehicles in the UK increased in 2017
  • Figure 3: The number of miles driven within the UK continues to increase
  • Figure 4: Fuel prices began to increase in 2017
  • Figure 5: The number of commercial motor claims fell in 2017
  • Figure 6: Total motor claims recorded fell considerably in 2017/18
  • Figure 7: The number of RTAs continues to fall
  • Figure 8: RSA holds the greatest share of the UK commercial motor insurance market
  • Figure 9: The commercial market is forecast to experience year-on-year growth
  • Figure 10: Forecasting methodology
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