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Market Research Report

UK Employers' Liability Insurance: Market Dynamics and Opportunities 2018

Published by GlobalData Product code 366920
Published Content info 40 Pages
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UK Employers' Liability Insurance: Market Dynamics and Opportunities 2018
Published: September 14, 2018 Content info: 40 Pages

"UK Employers' Liability Insurance: Market Dynamics and Opportunities 2018", report tracks the health and shape of the employers' liability market - taking into account market size, profitability, performance ratios, and the claims environment. Bringing this to life, the context of the UK's economic growth and business landscape, as well as the possible impact of a post-Brexit environment, are all taken into consideration to build a full picture of this space. Key announcements, shifts in the market, and likely future changes are analyzed for impact across all relevant stakeholders.

The UK employers' liability market has faced a turbulent period. Factors such as Brexit impacting the underlying drivers of demand and the decision to set the Ogden discount rate at -0.75% have forced insurers to raise premiums in order to protect themselves from increased costs. Despite these challenging conditions the employers' liability market experienced growth in 2017, with gross written premiums (GWP) increasing by 3%. The future of the space will undoubtedly be influenced by the outcome of Brexit on the UK economy, meaning the outlook is uncertain.


  • The employers' liability market grew by 3.4% in 2017 as GWP reached £1,242m.
  • Changes to the Ogden rate forced insurers to increase premiums, and can be seen as one of the driving forces behind growth in 2017. But despite this increase the market has remained highly competitive.
  • The underlying demand drivers of business numbers and employee numbers both rose, giving the employers' liability market an increased potential customer base.

Reasons to buy:

  • Review your strategy against both existing and new challenges regarding the employers' liability market.
  • Benchmark against the market's experience of size, growth, performance, and claims environment.
Table of Contents
Product Code: FS0155IA

Table of Contents


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


  • 2.1. Introduction
  • 2.2. The number of businesses in the UK increased by 3% in 2017, helping drive demand
    • 2.2.1. Micro businesses saw the biggest growth in 2017
    • 2.2.2. London acted as the main catalyst for growth over the review period
    • 2.2.3. Specialist insurers may face challenges as growth rates vary considerably across industries
  • 2.3. The employers' liability market returned to growth in 2017 following a large contraction in 2016
    • 2.3.1. Ogden rate upheaval has had an impact on premiums
  • 2.4. Employers' liability made its first underwriting profit since 2005
  • 2.5. Claims numbers continue to fall following a pre-LASPO surge
    • 2.5.1. Workplace injuries continue to fall as safety standards increase
  • 2.6. Reforms in the personal injury market will impact employers' liability claims
    • 2.6.1. Proposed changes to the Ogden rate will drive claims cost in the employers' liability market
    • 2.6.2. Insurers need to be alert to CMC activity as the Civil Liability Bill will shift CMCs' focus
    • 2.6.3. Changes to the small claims track limit will have a negligible impact on employers' liability


  • 3.1. The total liability market experienced a slight increase in competition in 2017
    • 3.1.1. AIG Europe aims to provide a more comprehensive employers' liability product
    • 3.1.2. Zurich holds firm as the second-largest provider in the total liability market
    • 3.1.3. Aviva moves from fifth to third as QBE loses out
    • 3.1.4. Towergate Underwriting increases activity in the employers' liability market


  • 4.1. The employers' liability market is forecast to continue growing despite Brexit-related uncertainty
  • 4.2. A number of factors will influence the growth of the market
    • 4.2.1. Brexit poses the biggest threat to employers' liability
    • 4.2.2. Consumer purchasing behavior is driving change in business models and shaping the employers' liability market
    • 4.2.3. The expanding gig economy could help grow the employers' liability market
    • 4.2.4. Personal injury claims could become a concern for the profitability of the market
    • 4.2.5. The industry must adapt to new working practices brought about by technology
    • 4.2.6. Mental health could be a potential new area for claims


  • 5.1. Abbreviations and acronyms
  • 5.3. Forecasting methodology
  • 5.4. Bibliography
  • 5.5. Further reading

List of Tables

  • Table 1: The number of private sector businesses and employment in the UK, 2013-17
  • Table 2: The number of UK private sector businesses by number of employees, 2013-17
  • Table 3: The number of employees and businesses by industry, 2017
  • Table 4: Growth rate of businesses and employees by industry, 2016-17
  • Table 5: UK employers' liability and total liability market GWP, 2013-17
  • Table 6: Employers' liability underwriting result and ratios, 2013-17
  • Table 7: Total number of personal injury claims in the employers' liability market, 2010-18
  • Table 8: Total number of fatalities and injuries in the workplace, 2012-17
  • Table 9: Total number of injuries spilt by severity, 2012-17
  • Table 10: Top 10 providers by market share in the total liability market, 2016-17
  • Table 11: Measures of competition in the total liability market, 2016-17
  • Table 12: Employers' liability market GWP forecasts, 2018f-22f

List of Figures

  • Figure 1: The key drivers of the employers' liability market continue to increase
  • Figure 2: Growth in the number of private businesses is focused in London
  • Figure 3: Across most industries the growth in the number of businesses outpaced employee's
  • Figure 4: Figure 3 key
  • Figure 5: The employers' liability market experienced slight growth in 2017
  • Figure 6: The employers' liability market moved into profitability in 2017
  • Figure 7: The number of recorded claims continued to fall
  • Figure 8: The average cost of claims continues to fall
  • Figure 9: The number of non-fatal workplace injuries is falling year on year
  • Figure 10: All types of injuries have continued to decline year on year
  • Figure 11: There were no new entrants to the top 10 total liability providers in 2017
  • Figure 12: The employers' liability market is set to face a turbulent few years
  • Figure 13: Forecasting methodology
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