UK Commercial Motor Insurance: Market Dynamics and Opportunities 2024

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $3,450	34 Pages	GlobalData	January, 2025	GBDT19567261

Best Price Guarantee
Price	from $3,450
Length	34 Pages
Publisher	GlobalData
Published Date	January, 2025
SKU	GBDT19567261

UK Commercial Motor Insurance: Market Dynamics and Opportunities 2024

Summary

This report analyzes the UK commercial motor insurance market, looking at drivers of uptake. It discusses the claims landscape in 2023, as well as the motor market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within this space. Future impactors in the market-including emerging technology such as artificial intelligence and autonomous vehicles-are also covered.

The UK commercial motor insurance market grew by 11.4% from 2022 to 2023 to reach a value of GBP6.29 billion. We expect the market to increase by a further 7.4% in 2024, reaching a value of GBP6.76 billion. Throughout 2023, one of the primary drivers of growth was elevated claims inflation, which continued to increase due to the rising cost of vehicle repairs, parts shortages, and labor expenses. Meanwhile, Aviva overtook Allianz to become the leading provider in 2023, accounting for 12% of the market.

Scope

The total number of commercial vehicles increased by 1.4% in 2023.
The total miles driven by all vehicles increased by 2.2% from 2022 to 2023.
Aviva reclaimed first place with a 34.5% increase in GWP, jumping from GBP562 million to GBP758.1 million. Aviva now accounts for 12% of the market.

Reasons to Buy

Determine how the market leaders have maintained their positions and evolved their product offerings.
Understand the ongoing effects of the cost-of-living crisis on the market.
Ascertain how newcomers and insurtechs are disrupting and driving innovation.
Identify areas of growth and development in the market going forward.
Recognize the challenges facing UK businesses and commercial motor insurers.

Executive Summary: Market overview; Key findings; Critical success factors; Market Dynamics; The UK commercial motor insurance market; Commercial motor insurance GWP increased by 11.4% in 2023 and is set to grow by 7.4% in 2024; Commercial vehicle registrations increased in 2023; Inflation started to fall in 2023 and into 2024; The number of miles driven on UK roads increased in 2023; Fuel costs began to fall in 2023 but remain higher than pre-pandemic; A more favorable Ogden rate has been introduced; Removing the IPT could increase EV sales; Government launches taskforce on motor insurance costs; Claims recorded by the CRU continue to fall while claims settled rose in 2023; The number of casualties fell in 2023; Competitor Dynamics; Overview of the market leaders; Aviva overtook Allianz to secure first place; Allianz fell to second after its market share declined by 1pp; Zurich remained in third place despite GWP growth; AXA rounded out the top five with a 7.1% share of the market; Insurtechs and newcomers; The Market Going Forward; The market is set to reach GBP7.56 billion in 2028; Technology continues to reshape the commercial motor insurance landscape; Asset visibility ranks as the top benefit for telematics solutions; AI can create big wins for insurers; Embedded insurance can transform the commercial motor insurance market; Amazon drone delivery receives UK approval; Electric vehicles in the commercial landscape; EVs are becoming increasingly popular among fleets; There are challenges for insurers in the move to EVs; Autonomous vehicles in the commercial landscape; Self-driving vehicles are set to be on UK roads by 2026; Uber and BYD plan to introduce thousands of self-driving cars to the UK
Appendix: Abbreviations, acronyms, and initialisms; Methodology; GlobalData’s UK Top 25 General Insurance Competitor Analytics; Forecasting methodology; Secondary sources; Further reading; About GlobalData; Contact Us
List of Tables: Table 1: Total number of commercial vehicles by type (000s), 2019–23; Table 2: Volume and annual growth rates of total claims recorded and settled, 2019–20 to 2023–24; Table 3: UK commercial motor insurance top 10 competitor GWP and market shares, 2021–23
List of Figures: Figure 1: The UK commercial motor insurance market is set to have reached GBP6.76 billion by the end of 2024; Figure 2: The total number of commercial vehicles increased by 1.4% from 2022 to 2023; Figure 3: Inflation has fallen significantly from its 2022 peak; Figure 4: The total miles driven for all motor vehicles increased by 2.2% in 2023; Figure 5: Total claims settled by the CRU rose in 2023–24; Figure 6: The number of claims recorded by the CRU declined slightly in 2023 amid a fall in casualties; Figure 7: Aviva became market leader after increasing its share of the market by 2pp; Figure 8: The commercial motor insurance market is set to reach GBP7.56 billion in 2028; Figure 9: Forecasting methodology