United Kingdom (UK) Charity Insurance Market - 2023
Summary
This report explores charities’ purchasing behaviors and preferences for insurance. New trends and innovations are highlighted, as well as the key factors that will influence the market moving forward.
The insurance market for non-profit organizations (NPOs) is expected to have increased to GBP1.04 billion in 2023, growing by 6.6%. This has been led by the hardening of premiums in many lines. Zurich took the lead in the industry in 2023, demonstrating its influence in this sector. Aviva took second place, and AXA took third place. The market experienced shifts in 2023, as indicated by the rise in uptake of 11 out of 16 products, but with the highly challenging economic environment and the cost of business soaring, the potential for NPOs to cut back on cover increased. The onus is therefore on insurers to engage with their customers, understand their challenges, and reflect on how they can meet their customers’ needs in their propositions and messaging.
Scope
- The insurance market for NPOs is expected to have increased to GBP1.04 billion in 2023, growing by 6.6%.
- The market experienced shifts in 2023, as indicated by the rise in uptake of 11 out of 16 products. Professional indemnity experienced the greatest increase of 19.7 percentage points.
- Brokers are essential, facilitating 61.6% of insurance policies. Even though this percentage was marginally lower than in 2022, it still shows how important brokers are today. In 2023, 57.2% of policies were bought online, up from 34.1% in 2019. This increase can be ascribed to the impact of digitalization.
- Identify the UK charity insurance market leaders.
- Understand the NPO landscape.
- Discover the purchasing journey of charities in the sector.
- Identify growth opportunities in the NPO space.
- Find out which value-added services are in demand.
- Executive Summary
- Non-Profit Organization Landscape
- The number of UK NPOs hovers between 160,000 and 170,000
- Social services make up the largest portion of voluntary organizations
- Inflation and the cost-of-living crisis hampered consumer spending
- Product Uptake and Packages
- GWP in the NPO market is expected to increase by 6.6% in 2023
- Product uptake mostly consists of liability and indemnity products
- 68.1% of NPOs purchased their insurance in a package in 2023
- Liability and indemnity products are the most commonly packaged
- The Purchasing Journey
- Brokers dominate the purchasing channel with NPOs
- Digitalization has led to progressively more online sales
- Most NPOs speak to an advisor or provider before purchasing
- The majority of insurance is paid via bank transfer
- Providers and Switching
- Zurich leads the insurance market for NPOs
- Aviva and Zurich score well for the top products
- Pricing remains most important to NPOs when selecting insurers
- More than 80% of NPOs renewed with their existing provider
- Future Market
- Marketing support offers an opportunity for insurers
- The cost-of-living crisis/inflation is the top concern for NPOs
- Charities have seen increased demand for mental health support from beneficiaries
- Top three NPO insurance providers' charity commitments
- Examples of social and environmental commitments made by insurers
- Other insurers and brokers that specialize in charity services
- Appendix
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