United Kingdom (UK) Commercial Motor Insurance - Market Dynamics and Opportunities 2020

United Kingdom (UK) Commercial Motor Insurance - Market Dynamics and Opportunities 2020



Growth in gross written premiums (GWP) for 2019 was driven by an increase in commercial vehicles on the roads in the UK. The number of reported claims remained unchanged compared to 2018, yet the average payout for claims reached its highest historical rate. This drift in the market signals that despite vehicle technology making road traffic safer, vehicles are increasingly becoming more expensive to repair. In the long term, rising repair costs will lead to an increase in premiums. COVID-19 has had various impacts on different commercial vehicle types. Some lines of business have increased the use of light goods vehicles for commercial purposes. Others (such as taxis and company cars) have opted for a Statutory Off Road Notification (SORN) as there has been a decrease in demand in their lines of business.

This report analyzes UK commercial motor insurance, looking at the market in terms of GWP, claims, road casualties, the motor parc, regulations, and opportunities. It discusses the impact of COVID-19 and further implications related to claims. It also looks at the leading competitors and their product offerings, as well as providing future forecasts of market size up to 2024.

Scope

- GWP increased by 1.5%, reaching £4.9bn in 2019 - driven by an increase in both the number of policies and premium costs.
- The number of claims remained unchanged in 2019 compared to 2018.
- RSA remains the largest player but is closely followed by Allianz, whose market share grew significantly over the course of the year.
- Despite COVID-19, the commercial motor insurance market is forecast to grow to £5.5bn in GWP by 2024 thanks to a sharp recovery.

Reasons to Buy

- Identify key factors that are influencing the cost of premiums.
- Learn how current and future regulation will influence the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Benchmark yourself against leading competitors.
- Understand the impact of COVID-19 on the commercial motor insurance market.

1. Executive Summary
1.1 Claims costs continue to rise
1.2 Key findings
1.3 Critical success factors
2. Market Dynamics
2.1 Commercial motor market GWP continues to grow
2.2 Claims remained flat in 2019
3. Competitor Dynamics
3.1 The UK commercial motor market remains competitive
4. The Market Going Forward
4.1 The commercial motor market will keep growing
4.2 A no-deal Brexit could increase the cost of vehicle repairs
4.3 The Civil Liability Act aims to reform personal injury motor claims
4.4 Technological innovation continues to shape the commercial motor market
4.5 The growth of the gig economy in light of COVID-19
5. Appendix
5.1 Abbreviations and acronyms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading

List Of Tables

Table 1: Total number of commercial vehicles in the UK, 2015-19
Table 2: Personal injury motor claims, 2011-20
Table 3: Market share and GWP of the top 10 providers in commercial motor insurance, 2018-19
Table 4: Commercial motor insurance market GWP and annual growth, 2019-24f
Table 5: Uptake in technology trends for personal vehicles

List Of Figures

Figure 1: The commercial motor market continued to grow in 2019
Figure 2: The number of commercial vehicles in the UK increased in 2019
Figure 3: The number of miles driven within the UK continues to increase
Figure 4: The number of notified claims remained static in 2019
Figure 5: Total motor claims remain lower than pre-LASPO levels
Figure 6: The number of RTAs continues to fall
Figure 7: RSA remains the market leader for commercial motor insurance
Figure 8: The commercial motor insurance market is set for year-on-year growth over the forecast period
Figure 9: Forecasting methodology

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