UK Commercial Insurance Distribution 2024
Summary
This report discusses the distribution landscape of UK commercial insurance. Each channel is discussed in turn, with a particular focus on the broker channel, which dominates the space. Analysis of responses to GlobalData’s 2024 UK Commercial Insurance Broker Survey offers insight into brokers’ growth and digital transformation strategies going forward. The SME market is also discussed, with due consideration given to smaller businesses and their comparatively simple insurance needs. The report finishes by providing an outlook on the future of the distribution landscape, mentioning areas for brokers to develop, growth opportunities, and upcoming insurtech companies operating in the space.
Brokers held an 82.8% share of the UK commercial insurance market in 2023e, highlighting their dominance of the distribution landscape. Nonetheless, this is a slight decrease from the 83.1% market share they commanded in 2022. Additionally, we expect the direct channel to have increased its share of commercial insurance distribution from 7.5% in 2022 to 7.9% in 2023e, in part driven by technological advancements that enhance the online purchasing experience. GlobalData forecasts that brokers will continue to dominate the commercial insurance landscape, while the direct channel will increase its share of distribution over the forecast period. As businesses show increasing openness to utilizing apps and artificial intelligence (AI) for insurance management, commercial insurance providers should capitalize on this trend by incorporating such digital solutions into their service offerings.
Scope
- In 2023e, brokers wrote 82.8% of commercial insurance premiums, down 0.3 percentage points (pp) from 83.1% in 2022. Meanwhile, the direct channel accounted for 7.9% of commercial insurance in 2023e-up 0.4pp compared to 2022.
- The SME space is more competitive, with many micro and small-sized businesses utilizing the direct channel as well as price comparison websites (PCWs).
- Marsh remains the leading broker in the UK commercial insurance market, increasing its revenue by 15% from 2022 to 2023.
- Identify the most frequently used channels to purchase commercial insurance
- Adapt your distribution strategy to cater to the changing needs of clients and intermediaries
- Learn how market leaders have strategized to achieve their success
- Understand the trends and themes set to transform the market in the future
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Commercial Insurance Distribution Overview
- Brokers dominated the commercial space in 2023e
- Table Figure 1: Brokers remain the dominant distribution channel for commercial insurance
- Table Figure 2: Brokers accounted for GBP31.1 billion in commercial lines GWP in 2023
- Table Figure 3: Brokers are not as dominant among SMEs
- Table Figure 4: SMEs favor online methods when purchasing insurance
- Brokers dominated the commercial space in 2023e
- The Broker Channel
- The broker landscape is dominated by global firms
- Table Figure 5: Marsh remains the market leader, with its revenue rising by 15% in 2023
- National brokers are more likely to employ a wide range of growth strategies compared to their smaller counterparts
- Table Figure 6: Cross-selling/upselling remains the most popular growth strategy
- Table Growth strategies utilized by UK brokers, 2024
- National brokers are more likely to adopt extra services
- Table Figure 7: Broker adoption of many service features remains low
- Table Figure 8: Provincial brokers are least likely to adopt new technologies into their service offering
- Table Figure 9: Super-regional brokers are increasingly adopting new service features in 2024
- Table Figure 10: National brokers are more likely to adopt additional service features than their smaller counterparts
- National brokers are most concerned about tough macroeconomic conditions
- Table Figure 11: National brokers are most worried about the impact of the macroeconomic climate on their business
- Table Figure 12: Brokers suggest the volume of commercial GWP increased in 2023
- The broker landscape is dominated by global firms
- Other Commercial Distribution Channels
- The direct channel is an important distribution channel for commercial insurance
- The banking channel is more popular among SMEs
- Table Selected banks and their insurance provider partners
- The Distribution Landscape Going Forward
- Brokers will continue to dominate commercial insurance
- Table Figure 13: The direct channel will grow in popularity over the forecast period
- Commercial insurance distribution going forward
- Table Figure 14: The majority of SMEs are open to using an insurance app
- Table Figure 15: The majority of SMEs are comfortable interacting with an AI-powered chatbot
- Table Figure 16: 51.7% of SMEs are comfortable with AI assessing their insurance needs and recommending the most suitable coverage options
- Brokers will continue to dominate commercial insurance
- Appendix
- Abbreviations, acronyms, and initialisms
- Definitions
- Methodology
- Secondary sources
- Further reading
- About GlobalData
- Contact Us
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