United Kingdom Insurance Report

Providing expert analysis, independent forecasts and competitive intelligence on the insurance industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Insurance Risk Reward Index and Company Profiles.

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United Kingdom Insurance Report
Product Price
$1,295.00

BMI View: On the whole, we anticipate that life insurance premium growth will be both more stable and profitable than in the non-life sector in the coming years. This is due primarily to the stability and strength of the underlying demographic life insurance drivers, which serve to insulate the sector from other macroeconomic or political influences. In the short t erm, the strength of the USD will reduce the trajectory of premiums when expressed in that currency. But the market ' s strengths will ultimately prevail and we expect life premiums to rise by nearly 7.5 annually through 2019. Non-life premiums are forecast to hover just below 1.5% annually. Continued consolidation is also expected , as market conditions foster greater competition, lower prices and product innovation, favouring the major insurers over smaller ones.

Headline Insurance Forecasts (United Kingdom 2012-2019)
Indicator 2012 2013 2014e 2015f 2016f 2017f 2018f 2019f
BMI/ONS
Gross life premiums written, GBPbn 113.56 108.18 123.35 130.55 139.93 151.35 162.30 176.46
Gross life premiums written, GBP, % y-o-y 7.1 -4.7 14.0 5.8 7.2 8.2 7.2 8.7
Gross life premiums written, USDbn 181.05 167.68 202.30 198.43 229.49 249.73 271.03 308.80
Gross life premiums written, USD, % y-o-y 6.0 -7.4 20.6 -1.9 15.7 8.8 8.5 13.9
Gross non-life premiums written, GBPbn 42.73 43.85 44.55 45.10 45.62 46.19 46.84 47.59
Gross non-life premiums written, GBP, % y-o-y 5.9 2.6 1.6 1.3 1.1 1.3 1.4 1.6
Gross non-life premiums written, USDbn 68.13 67.97 73.06 68.56 74.82 76.22 78.22 83.29
Gross non-life premiums written, USD, % y-o-y 4.9 -0.2 7.5 -6.2 9.1 1.9 2.6 6.5

Key Updates & Forecasts

  • Regulatory changes continue to alter the insurance landscape in the UK. On November 1 2015, the new Insurance Premium Tax (IPT) came into force, raising the tax rate on motor and home policies from 6% to 9.5%. This is likely to push customers to seek additional cost savings, putting downward pressure on premium pricing and further stressing smaller insurers that are already struggling to compete with industry leaders. This supports our view that we will see more mergers and acquisitions in this market in light of a continued positive earnings environment and competition across the industry. The overhaul of the UK's pension system has, in general, brought a steep sales decline for annuities, as retirees are no longer required to purchase them. However, annuity sales did see their first quarterly rise in three years in the third quarter of 2015, rising to GBP1.17GBP from GBP990mn, according to the Association of British Insurers (ABI). Nevertheless, insurers are seizing this trend away from annuities as an opportunity to offset losses by developing new retirement offerings such as income drawdown products and making "bulk" deals with corporate pension schemes.

  • Elsewhere, RSA Group continues to dispose of its operations in Latin America, recently selling off an additional GBP403mn in assets, bringing the total of agreed disposal in the region to GBP1.2bn. This is part of a strategic decision by RSA to focus on its competitive advantages in other markets, including the UK. On October 5 2015, Ageas bolstered the integrity of its application process by joining the UK Insurance Fraud Register. The firm also officially launched its new home and motor insurance joint venture with Virgin Money on October 14 2015. Ageas will underwrite all home insurance products while a panel of insurers, managed by Ageas Retail, will underwrite motor products. The move is designed to bring pricing consistency and remove minor administrative fees for customers.

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
14
Life Premiums Forecast
14
Life Premiums
14
Table: Gross Life Premiums Written (United Kingdom 2012-2019)
15
Table: Net Life Premiums Written (United Kingdom 2012-2019)
16
Table: Reinsurance Life Premiums Written (United Kingdom 2012-2019)
17
Life Insurance Claims
17
Table: Life Insurance Claims (United Kingdom 2007-2014)
17
Life Insurance Drivers
18
Table: Life Expectancy by Gender (United Kingdom 2012-2019)
18
Table: Demographic Breakdown (United Kingdom 2012-2019)
18
Non-Life Premiums Forecast
19
Non-Life Premiums
20
Table: Gross Non-Life Premiums Written (United Kingdom 2012-2019)
21
Table: Net Non-Life Premiums Written (United Kingdom 2012-2019)
21
Table: Reinsurance Non-Life Premiums Written (United Kingdom 2012-2019)
22
Non-Life Claims
22
Table: Non-Life Insurance Claims (United Kingdom 2007-2014)
23
Non-Life Insurers' Assets
23
Table: Non-Life Insurers' Assets (United Kingdom 2007-2014)
24
Non-Life Sub-Sector Forecast
24
Table: Non-Life % Breakdown (United Kingdom 2012-2019)
26
Motor Vehicle and Transport Insurance
26
Table: Motor Vehicle Insurance (United Kingdom 2012-2019)
27
Table: Insurance Key Drivers, Autos (United Kingdom 2012-2019)
27
Table: Transport Insurance (United Kingdom 2012-2019)
29
Table: Insurance Key Drivers, Freight Tonnage (United Kingdom 2012-2019)
29
Property Insurance
30
Table: Property Insurance (United Kingdom 2012-2019)
30
Health and Personal Accident Insurance
31
Table: Health Insurance (United Kingdom 2012-2019)
31
Table: Insurance Key Drivers, Private Health Expenditure (United Kingdom 2012-2019)
32
Table: Personal Accident Insurance (United Kingdom 2012-2019)
32
General Liability Insurance
33
Table: General Liability Insurance (United Kingdom 2012-2019)
33
Industry Risk Reward Ratings
34
Developed States Insurance Risk/Reward Index
34
Table: Developed States Insurance Risk/Reward Index
35
Market Overview
36
Life Market Overview
36
The Product Offering
36
The Competitive Landscape
36
Table: Life Insurance Premiums (USDmn), 2009-2012
38
Non-Life Market Overview
39
The Product Offering
39
The Competitive Landscape
39
Table: Non-Life Premiums (USDmn), 2009-12
41
Company Profile
42
Ageas
42
Prudential plc
44
RSA
46
Standard Life
48
Demographic Forecast
50
Table: Population Headline Indicators (United Kingdom 1990-2025)
51
Table: Key Population Ratios (United Kingdom 1990-2025)
51
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
52
Table: Population By Age Group (United Kingdom 1990-2025)
52
Table: Population By Age Group % (United Kingdom 1990-2025)
53
Methodology
55
Industry Forecast Methodology
55
Risk/Reward Index Methodology
58
Table: Indicators
60
Table: Weighting of Indicators
61

The United Kingdom Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's United Kingdom Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the British insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for United Kingdom to test other views - a key input for successful budgeting and strategic business planning in United Kingdom's insurance market.
  • Target business opportunities and risks in United Kingdom through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.