DUBLIN--(BUSINESS WIRE)--The "UK Employers' Liability Insurance: Market Dynamics and Opportunities 2017" report has been added to Research and Markets' offering.
An unexpected extent of the changes to the Ogden rate has shaken the employers' liability (EL) market. Premium rate rises have been forced on a sector characterized by over-capacity and high levels of competition. In spite of the recent rate increases, underlying market dynamics persists, and the sector faces a period of continued turbulence, due to uncertainties over key pieces of legislation and the performance of the economy.
Key findings include in this report:
- UK EL market gross written premium (GWP) contracted by 7.4% in 2016.
- Insurers have responded to the 2017 discount rate change with significant reserve strengthening and premium rate rises, which has led to estimates of more robust GWP growth.
- The number of accident and disease EL claims recorded fell significantly in 2016-17 (-15.2%) with the impact of the LASPO spike. Noise-induced hearing loss (NIHL) claims have waned in combination with continued improvements in workplace health and safety.
Critical success factors
- Tackling the impact of Brexit in the face of economic uncertainty - EL insurers need to be prepared to respond in the face of considerable economic uncertainties. A slowdown in GDP growth, higher inflation, interest rate rises, an increase in wage inflation, and the risk of a decline in skilled labor could all impact profitability and demand.
- Preparation for government reforms - Insurers need to be prepared for any future developments in personal injury reforms. The spiral of NIHL claims has already demonstrated the effect that a shift in the attentions of claimant parties can have. Insurers and regulators therefore need to be on alert for any unintended consequences and knock-on EL impacts.
- Ogden strategic responses - Insurer responses to the current and future Ogden rate will be vital to success in terms of profitability and market share. Failing to respond sufficiently could lead to long-term profitability issues, while responding too vigorously could cause significant loss of market share. Either way, EL insurers are walking a tightrope. Rating and new business strategies will need close examination, and increasing sophistication in terms of rating factors such as workforce age profile and claims experience will be key to success.
- Liberty Mutual
Key Topics Covered:
1 Executive Summary
2. Market Dynamics
3. Developments in 2017 and Beyond
For more information about this report visit https://www.researchandmarkets.com/research/g829nf/uk_employers