United Kingdom Household Insurance Market Dynamics and Opportunities Report 2019 - ResearchAndMarkets.com

DUBLIN--()--The "UK Household Insurance: Market Dynamics and Opportunities 2019" report has been added to ResearchAndMarkets.com's offering.

This report provides an in-depth analysis of the UK household insurance market. It looks at market size and performance ratios as well as changes in premiums, claims, contextual and economic factors, regulations, and opportunities. It provides a thorough overview of the market along with future forecasts and analysis of emerging technologies and products.

In terms of gross written premiums (GWP) the household insurance market reverted to type, declining by 4.9% in 2018 following a rare annual increase in 2017. Severe weather incidents at the start of 2018 were offset by insurers curtailing claims in almost every other category, which allowed insurers to keep premiums suppressed.

Traditional players RSA, Lloyds Bank, Direct Line, and Aviva continue to lead the market, although they face increasing competition from insurtechs honing in on Generation Rent. A large percentage of uninsured customers in this space are not being effectively targeted by traditional insurers and policies. Modern players offering digital and flexible policies aimed at renters will alter the market going forward, with on-demand, flexible policies likely to become commonplace.

Scope

  • UK household insurance GWP declined by 4.9% in 2018 to 6.2bn. Over 2014-18, GWP recorded a compound annual growth rate (CAGR) of -2.1%
  • Total claims increased by 13.3% in 2018. This was caused by weather-related claims rising by in excess of 150% during the year. Other categories recording declines prevented an even sharper rise.
  • RSA's market share rose by 1.0 percentage point in 2018 to overtake Lloyds Bank as market leader.

Key Topics Covered:

1. EXECUTIVE SUMMARY

1.1. The UK household insurance market is declining

1.2. Key findings

1.3. Critical success factors

2. MARKET DYNAMICS

2.1. Introduction

2.2. Market conditions softened in 2018

2.2.1. UK household insurance GWP declined by 4.9% in 2018

2.2.2. Premium rate declines returned in 2018 following a rare year of growth

2.2.3. Combined cover is still the dominant product

2.2.4. Underinsurance among Generation Rent remains a major concern

2.2.5. Regulators still see dual pricing as a major problem

2.3. Weather incidents caused claims to rise in 2018

2.3.1. Two severe countrywide storms saw weather claims rise by over 150% in 2018

2.3.2. Claims inflation is challenging profitability

2.3.3. Underwriting profitability dropped significantly in 2018

2.3.4. Flood Re continues to help at-risk houses across the UK

2.4. Home insurance demand was hit by a reduction in new house registrations

2.4.1. New home registrations and completions remained static in 2018

2.4.2. Mortgage approval rates dipped slightly in 2018

2.4.3. Penetration rates are high among owner-occupiers but lower for tenants

3. COMPETITOR DYNAMICS

3.1. The top 10 insurers account for two thirds of GWP

3.1.1. RSA overtook Lloyds and Direct Line to lead the household market

3.2. Analysis of the market leaders

3.2.1. Direct Line lost key partnerships as RSA picked up Nationwide

3.2.2. Lloyds Bank partnered with US startup Trov to sell products to home owners

3.2.3. Aviva is evolving its proposition using technology

3.2.4. Allianz's acquisition strategy will make it a key player in the household market

3.2.5. Saga responded to FCA warning with three-year fixed product

4. THE MARKET GOING FORWARD

4.1. Introduction

4.2. The market is expected to drop to 5.9bn in GWP by 2024

4.2.1. Insurers controlling claims should see the market steadily decline over the forecast period

4.3. Startups have turned their attention to Generation Rent

4.3.1. The Generation Rent trend could mark a shift in home insurance

4.3.2. Urban Jungle targets Generation Rent

4.3.3. Brolly launches its own contents policy to combat an antiquated market

4.3.4. Lemonade's move to Europe poses a threat to established players

4.3.5. Other US startups are also worth watching

4.4. Competition from retailers is growing

4.4.1. Amazon is on the verge of entering the market

4.5. Growth of smart home devices will impact the market

4.5.1. Water detection and education are essential to reducing escape of water claims

4.5.2. Cybersecurity is an emerging market for individual customers

5. APPENDIX

Companies Mentioned

  • Lloyds Banking Group
  • Direct Line Group
  • Aviva
  • RSA
  • AXA
  • Ageas
  • Legal & General
  • NFU Mutual
  • Allianz
  • LV=
  • Zurich
  • Neos
  • Google
  • Amazon
  • HomeServe
  • Bought By Many
  • Urban Jungle

For more information about this report visit https://www.researchandmarkets.com/r/65z801

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900