UK Private Motor Insurance: Market Dynamics and Opportunities 2024

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $3,450	47 Pages	GlobalData	November, 2024	GBDT19429929

Best Price Guarantee
Price	from $3,450
Length	47 Pages
Publisher	GlobalData
Published Date	November, 2024
SKU	GBDT19429929

UK Private Motor Insurance: Market Dynamics and Opportunities 2024

Summary

GlobalData expects gross written premiums (GWP) in the UK private motor insurance market to grow by 9.6% in 2024, following an increase of 23.9% in 2023. As a result, the market will reach a value of GBP16.76 billion by the end of 2024. Average premiums increased by 25.3% from 2022 to 2023, while the number of policies written fell by 1.5% during the same period. Claims inflation remains an issue for insurers, driven by supply chain issues, labor shortages, and macroeconomic conditions. Gross claims paid increased by 17.6% from 2022 to 2023, while the average claims cost rose by 7.3%. Although the total number of claims notified fell from 2022 to 2023, the claims frequency increased by 0.2 percentage points (pp) to 10.6%.

This report analyzes the UK private motor insurance market, looking at drivers of uptake. It explores the claims landscape in 2023, as well as the motor market and upcoming regulatory changes within the insurance industry. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs operating in this space. Future impactors on the market are also examined, including inflation and emerging technologies such as autonomous vehicles. In addition, market forecasts are provided up to 2028.

Scope

The UK private motor insurance market is expected to grow by 9.6% in 2024e, following a 23.9% increase in 2023.
Average premiums increased by 25.3% from 2022 to 2023, while the number of policies written fell by 1.5%.
Gross claims paid increased by 17.6% from 2022 to 2023.
The average claims cost increased by 7.3% from 2022 to 2023.

Reasons to Buy

Determine the underlying factors affecting the private motor insurance market.
Understand the impact of new regulations on the industry.
Observe the actions and reactions of incumbent market leaders and insurtech newcomers.
Understand the effects of the cost-of-living crisis on the private motor market.
Anticipate new challenges and changes to the market going forward.

Executive Summary
- Market overview
- Key findings
- Critical success factors
Market Dynamics
- The private motor insurance market grew in 2023 and 2024
  - Table Figure 1: The private motor insurance industry increased by 23.9% in 2023 and is expected to grow further in 2024
  - Table Figure 2: The average private motor insurance premium increased by 25.3% in 2023
- Average premiums rise to quarterly record in 2024
  - Table Figure 3: Average premiums rose by 32.8% from Q1 2023 to Q1 2024
  - Table Figure 4: Inflation continues to fall from the peak in 2022
- The motor claims landscape in 2023
  - Table Figure 5: The total number of claims notified fell slightly in 2023
  - Table Figure 6: The average claim cost increased by 7.3% in 2023
  - Table Number of claims settled, average cost, and gross claims paid, by claim type, 2019-23
- Road traffic accidents (RTAs) and their link to claims
  - Table Figure 7: The number of claims recorded by the Compensation Recovery Unit (CRU) fell slightly in 2023
  - Table Figure 8: Casualty numbers decreased from 2022 to 2023
  - Table Figure 9: The average petrol price decreased by 14.8% from 2022 to 2023
  - Table Figure 10: New car registrations increased by 1.2% in 2023
  - Table Figure 11: Hybrid vehicles are becoming increasingly popular in the UK
Competitor Dynamics
- Admiral remains the market leader
  - Table Figure 12: Admiral strengthened its position as market leader after recording a GWP growth of 41.2%
  - Table GWP and market shares of the top 10 private motor insurers in the UK, 2021-23
- Analysis of the market leaders
- Newcomers and insurtechs gain traction
The Market Going Forward
- The UK private motor insurance market is expected to reach GBP17.82 billion by 2028
  - Table Figure 13: The UK’s private motor insurance GWP is expected to reach GBP17.82 billion in 2028
- Future opportunities in the private motor insurance market
  - Table Figure 14: Insurers should target younger demographics with telematics policies
  - Table Figure 15: Consumers are comfortable interacting with AI technology
- Speed limiters and smart motorways
- The EV market is expected to keep growing
  - Table Figure 16: 36% of consumers are considering switching to an EV in the next five years
- Fully autonomous vehicles will disrupt motor insurance
Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
  - Table Figure 17: Forecasting methodology
- Secondary sources
- Further reading