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 P rudential plc has disposed of 25% stakes in two joint ventures in order to keep its options open in relation to protection.
Discipline in underwriting remains a key theme in the non-life segment. Across the segment as a...
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.
- 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).
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.
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.
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.