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

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

The UK SME insurance market saw growth pick up significantly in 2018, rising from 1.4% in 2017 to 6.3% in 2018

This was due to a slight shift in the makeup of SME business numbers, an uptick in penetration across the majority of product lines, and increased weather-based claims (a consequence of Storm Emma and the Beast from the East) that pushed up premiums.

This report analyzes the UK SME insurance market. Economic factors including GDP growth, SME business confidence, and unemployment rates are explored in relation to the UK's business landscape. Growth in the number of SMEs is explored by business size and industry. The SME market is discussed in relation to the uptake of commercial insurance. Finally, an estimate of the current and historic market size is provided, in addition to a five-year forecast.

However, SMEs endured a difficult year in 2018 due to a stagnant economy, which has seen consumer and small business confidence plummet. The sector is very closely linked to the economy, and consequently SMEs remain very concerned about Brexit and its potential implications going forward. The performance of this sector is critical for the prospects of the wider insurance market in the UK, as commercial and SME lines provide higher growth opportunities for insurers than personal business.


  • 10 out of the 11 insurance products covered in our SME Insurance Survey saw penetration rates rise in 2019, but overall penetration rates fell according to our 2019 Insurance Consumer Survey.
  • Brexit is the biggest concern for UK SMEs, with 45.3% of firms worried about its implications (up from 36.8% in 2017).
  • The UK SME insurance market is forecast to be worth 9.3bn by 2023.
  • The number of micro businesses declined by 0.6% in 2018, while small-sized enterprises (0.8%) and medium companies (2.9%) both increased.

Reasons to buy

  • Be aware of the significance of SMEs within the commercial insurance market and how they are influenced by the UK economy.
  • Adapt your strategy and ensure you remain competitive by understanding the opportunities for growth within the SME insurance market.
  • Recognize challenges the SME insurance market faces.
  • See Our forecasts for the SME market.

Key Topics Covered:


1.1. The SME insurance market saw strong growth in 2018

1.2. Key findings

1.3. Critical success factors


2.1. Introduction

2.2. The SME market is the backbone of the UK economy

2.2.1. The number of SMEs declined, but they still dominate total business

2.2.2. The number of company liquidations saw its third consecutive rise in 2018, but the growth rate dropped

2.2.3. Construction leads the SME market by business numbers while wholesale dominates turnover

2.3. Macroeconomic conditions affect the SME sector

2.3.1. UK GDP growth was stagnant up to the Q2 2019 decline

2.3.2. UK unemployment continues to fall to record lows

2.3.3. Real pay improved to slight growth in 2018 after declines in 2017

2.4. Key issues affecting SMEs beyond the economy

2.4.1. Business and consumer confidence have been affected by the possibility of a no-deal Brexit

2.4.2. SMEs are still most concerned about Brexit and cybercrime

2.4.3. Business rates continue to rise at the start of each financial year

2.4.4. Rising pension contributions and minimum wages lead to SMEs' costs growing

2.4.5. Rising employment costs and economic uncertainty have led to growing use of freelancers

2.5. The government has means to boost the SME sector

2.5.1. Government SME funding dipped in 2018, but a new fund was launched in 2019

2.5.2. The government and banks are aiming to spark investment in SMEs


3.1. The SME sector is strategically important for insurance

3.2. The SME market registered strong growth in 2018

3.2.1. Rates for most commercial insurance products have grown steadily

3.3. The majority of SMEs hold at least one insurance product

3.3.1. Public liability is the leading SME insurance product

3.3.2. Insurance product penetration varies by industry, in line with the risks involved

3.3.3. Overall insurance penetration has fallen, but individual products saw increases


4.1. SME insurance is set to exceed 9.0bn by 2022, but growth will remain slow

4.2. SME insurance sector innovation is inspired by personal lines

4.2.1. Digital banks turn to SME insurance as the industry begins to modernize

4.2.2. Next Insurance - a one-stop shop for SMEs - becomes an insurtech unicorn


Companies Mentioned

  • AXA
  • Aviva
  • Allianz
  • Hiscox
  • Zurich

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


Laura Wood, Senior Press Manager
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


Laura Wood, Senior Press Manager
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