United Kingdom Insurance Report

Published 15 June 2015

  • 66 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
United Kingdom Insurance Report

BMI View: We believe the UK's economic recovery will continue in 2015 and beyond, powered by a recovery in real wages and further improvements in labour market conditions. Although real GDP growth rates will decelerate slightly over the coming quarters, the UK will likely outperform most regional peers. This will improve available funds for spending on insurance across both life and non-life lines. In particular we anticipate strong growth in health insurance.

Even if London was not home to Lloyd's of London and the International Underwriting Association, the UK would still have a huge and dynamic insurance sector. Relative to other large European markets, the UK is unusual in that the competitive landscapes of both the non-life and life segments contain large numbers of world-class indigenous companies (some of which have very large footprints outside the country) and numerous multinational/global titans that are based in other countries. In short, customers in both major segments can be assured of world-class solutions that are provided by innovative insurers which have excellent access to global capital and reinsurance markets. Some of the leaders enjoy the additional stability of business that comes from being composite insurers.

The changes that were announced in the March 2014 Budget are momentous. This is because the life insurers dominate organised savings in the UK in a way that they do not in other Anglo-Saxon countries. Key metrics such as life density (premiums per capita) and penetration (premiums as a percentage of GDP) are high in the UK. The mega-merger that was announced in December 2014 by Aviva and Friends Life will not be the only strategic response by majors. Meanwhile, Ageas has sold its protection business, while Prudential plc has disposed of 25% stakes in two joint ventures in order to keep its options open in relation to protection.

We expect that premiums will rise slowly and steadily in both major segments of the UK's massive...

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
14
Life Premiums Forecast
14
Life Premiums
15
Table: Gross Life Premiums Written (United Kingdom 2012-2019)
16
Table: Net Life Premiums Written (United Kingdom 2012-2019)
16
Table: Reinsurance Life Premiums Written (United Kingdom 2012-2019)
17
Life Insurance Claims
18
Table: Life Insurance Claims (United Kingdom 2007-2014)
18
Life Insurance Drivers
18
Table: Life Expectancy by Gender (United Kingdom 2012-2019)
18
Table: Demographic Breakdown (United Kingdom 2012-2019)
19
Non-Life Premiums Forecast
19
Non-Life Premiums
20
Table: Gross Non-Life Premiums Written (United Kingdom 2012-2019)
22
Table: Net Non-Life Premiums Written (United Kingdom 2012-2019)
23
Table: Reinsurance Non-Life Premiums Written (United Kingdom 2012-2019)
24
Non-Life Claims
24
Table: Non-Life Insurance Claims (United Kingdom 2007-2014)
24
Non-Life Insurers' Assets
25
Table: Non-Life Insurers' Assets (United Kingdom 2007-2014)
25
Non-Life Sub-Sector Forecast
26
Table: Non-Life % Breakdown (United Kingdom 2012-2019)
28
Motor Vehicle and Transport Insurance
28
Table: Motor Vehicle Insurance (United Kingdom 2012-2019)
29
Table: Insurance Key Drivers, Autos (United Kingdom 2012-2019)
29
Table: Transport Insurance (United Kingdom 2012-2019)
31
Table: Insurance Key Drivers, Freight Tonnage (United Kingdom 2012-2019)
32
Property Insurance
32
Table: Property Insurance (United Kingdom 2012-2019)
33
Health and Personal Accident Insurance
33
Table: Health Insurance (United Kingdom 2012-2019)
34
Table: Insurance Key Drivers, Private Health Expenditure (United Kingdom 2012-2019)
34
Table: Personal Accident Insurance (United Kingdom 2012-2019)
35
General Liability Insurance
35
Table: General Liability Insurance (United Kingdom 2012-2019)
36
Industry Risk Reward Ratings
37
Developed States Insurance Risk/Reward Index
37
Table: Developed States Insurance Risk/Reward Index
38
Market Overview
39
Life Market Overview
39
Table: Life Market Share, USDmn, 2009-2012
40
Table: Life Market Share (%), 2009-2012
41
Non-Life Market Overview
42
Table: Non-Life Market Share, USDmn, 2008-2012
44
Table: Non-Life Market Share (%), 2008-2013
45
Company Profile
47
Ageas
47
Prudential plc
49
RSA
51
Standard Life
53
Demographic Forecast
55
Table: Population Headline Indicators (United Kingdom 1990-2025)
56
Table: Key Population Ratios (United Kingdom 1990-2025)
56
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
57
Table: Population By Age Group (United Kingdom 1990-2025)
57
Table: Population By Age Group % (United Kingdom 1990-2025)
58
Methodology
60
Industry Forecast Methodology
60
Risk/Reward Index Methodology
63
Table: Indicators
65
Table: Weighting of Indicators
66

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.

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