United Kingdom Motor Insurance Market Report 2021: COVID-19 Will Have Long-Term Effects on 14 Billion Industry – ResearchAndMarkets.com


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DUBLIN – ()–The UK Motor Insurance Market Trends Report 2021 report has been added to From ResearchAndMarkets.com to offer.

This report looks at the consumer market (or private insurance), where motor insurance is defined as insurance that covers individuals against the cost of repairing or replacing a vehicle and the costs associated with injuries to other people and damage to their vehicles . . Depending on the policy purchased, the insurance may also cover the contents of the vehicle.


The publisher estimates that the motor insurance market generated a gross written premium (GWP) of just over $ 14.2 billion in 2019, an increase of about 2% from 2018. Given the impact of COVID-19 on the market, expect the issuer that GWP will decrease by 8% in 2020. The main factors behind this decrease are premium discounts given to customers by some leading insurers; premium rate reductions due to the reduced frequency of damage claims; reduced demand for car insurance in the lockdowns.

Between 2020 and 2025, the publisher predicts that auto insurance GWP will rise 18% and end at more than 15 billion. Growth will be strongest between 2020 and 2022, after which time annual growth will slow down. Between 2020 and 2022, premiums are expected to increase by more than 10% as the UK recovers from the worst effects of the COVID-19 pandemic. After 2022, premiums will increase by an average of approximately 2% per year.

COVID-19 has had the biggest impact on the UK economy and society in 2020/21. It has led to a significant reform of consumer driving habits and the related car insurance market.

The main effects are:

  • A significant decrease in the number of claims for motor insurance (fewer accidents and thefts) and a higher demand for PAYG insurance.

  • A reduction in premium costs.

  • Decrease in driving tests and decrease in car purchases – reducing the demand for insurance from new drivers and the demand for higher value insurance from existing driving upgrades to more expensive cars.

  • Increase pressure on family finances – reducing car purchases and decreasing demand for cheaper insurance.

  • Increase the use of IT / online systems to purchase, manage and manage policies and a general acceleration in insurers’ use of InsurTech systems, such as fully digital systems to assess accident damage and repair costs, accident liability and claims diagnosis.

Other important developments affecting the market in recent years and in the future include:

  • The FCA market study that ruled out price hike and introduced new governance rules that will ultimately try to prevent automatic renewals from being used as a barrier to switching.

  • Lower the cost of personal injury claims for insurers. The implementation of new rules / laws (eg The Civil Liability Act), which will most likely reduce the number of lower personal injury claims due to a traffic accident.

Main topics:

1. Summary

  • Auto insurance market worth more than 14 billion in GWP

  • Three major routes to the market

  • About 31 million cars can be insured, seven in ten of which are adults insured

  • COVID-19 is reshaping the market

  • Main non-COVID developments

  • Direct Line and Admiral lead the market

  • GWP for more than 15 billion each by 2025

2 Introduction

3. Market structure

  • Direct route or through brokers

  • Nearly 600 insurers

4. Market developments and drivers

  • Insure nearly 32 million cars

  • With expensive to insure cars of increasing importance

  • Seven in ten adults have car insurance

  • COVID-19

  • COVID-19 lowers claims inflation and results in lower premiums

  • COVID-19 accelerates the use of InsurTech and new technologies

  • The rise of prices hosted by insurers

  • Flexible and on-demand motor insurance

  • Telematics insurance, still a niche sector

  • Start of insurance for electric vehicles

  • Market price research from the Financial Conduct Authority

  • Insurance premium tax affects premium costs

  • The Civil Liabilities Act: Reform of Soft Tissue Injury (Whiplash) Claims Process

  • 2019 revision of the Personal Injury Discount Rate (PIDR)

  • Automatic and Electric Vehicles Act (AEVB)

  • Brexit and Europe

They are the main players

  • Direct Line and Admiral lead the market

  • Admiral Group

  • Allianz Insurance / LV / Legal and General

  • Ageas

  • Axa Insurance UK Ltd

  • Aviva Insurance Ltd

  • BGL (Holdings) Ltd.

  • Co-op insurance services

  • Covea Insurance plc

  • Direct line group

  • esure Group

  • Hastings Group

  • Markerstudy Group (Markerstudy Holdings Ltd)

  • The National Farmers Union Mutual Insurance Society Limited (NFU Mutual)

  • RSA

  • Saber insurance

  • Saga plc

  • Zurich

6. Market size and trends

  • Auto insurance market worth more than 14 billion in GWP

7. The future

  • InsurTech will continue to innovate the industry

  • The potential for Open Finance

  • COVID-19 has long-term consequences

  • FCA Market Review affects pricing

  • GWP is expected to increase by 18%

8. Associations

For more information on this report, visit https://www.researchandmarkets.com/r/efd7yk

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