United Kingdom (UK) Home Insurance (Mid-Net-Worth and High-Net-Worth) Market Size, Trends, Competitor Dynamics and Opportunities
Summary
This report provides an in-depth study into specialist home insurance products for wealthy individuals. It begins by defining the mid-net-worth (MNW) and high-net-worth (HNW) segments, followed by analysis of the historical growth in the number of these individuals and an estimate of market size. It outlines what a typical MNW and HNW home insurance product includes and how they are distributed. Key issues associated with the industry are addressed, in addition to highlighting key market players, their products, and the latest developments. It concludes with a five-year market forecast and explores how technology has the potential to shape the market in the future. The report draws on primary and secondary research, including GlobalData’s proprietary market estimates and forecasts.
In spite of pandemic-related turbulence and the economic headwinds of 2022, the overall number of high-net-worth (HNW) individuals in the UK has grown over the last few years. This increase has combined with hardening premiums to drive up UK HNW home insurance gross written premiums (GWP), as insurers have acted to combat strong inflationary pressures following a long period of soft rates. The competitor landscape is shifting, with long-established HNW insurers facing pressure from major composites and a number of other specialist providers targeting growth. Hard market conditions are expected to subside after 2023, thanks to a combination of easing inflationary pressures, increased competition, and the operational efficiencies of digitalization reducing rate pressure.
Scope
- GlobalData estimates that the HNW home insurance market was worth GBP671 million in 2022, with strong growth driven by the rising number of HNW individuals and double-digit premium rate increases.
- There are more than 400,000 HNW individuals (with liquid assets in excess of $1 million) in the UK. Overall, the number of HNW individuals increased by an average of 3.9% a year between 2018 and 2022.
- Long-established HNW market leaders Hiscox and Chubb are facing competition from a range of insurers with ambitious growth aims. Aviva is expecting to become market leader with its recent acquisition of Azur.
- Personalized service remains vital, but seamless digital and physical interactions in other areas of HNW individuals’ lives will raise their expectations for their insurance providers to offer the same.
- Understand the current and forecast size and growth of the UK HNW home insurance market.
- Gain insight into emerging HNW market segments and the impact of changing HNW expectations on their insurance relationships.
- Understand the major players and shifting competitor dynamics in the UK HNW home insurance sector.
- Learn what forces will affect the future shape of the UK HNW home insurance market.
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- The UK HNW and MNW Home Insurance Market
- Introduction
- What classifies an individual as MNW or HNW?
- Table UK MNW and HNW insurance parameters
- Strong growth in the HNW home insurance market
- Table Figure 1: There has been robust growth in UK HNW home insurance GWP in recent years
- Table UK HNW and MNW home insurance market GWP, GBP million, 2018–22
- Table Figure 2: Growth in the number of UK MNW and HNW individuals stalled in 2022
- Table Figure 3: There are 1.7 million MNW individuals in the UK with liquid assets >$300,000
- Table Number of UK MNW and HNW individuals by liquid assets, 000s, 2018–22
- HNW insurers are navigating a challenging claims environment
- Table Figure 4: Inflation rose sharply in 2021 and 2022
- Table Additional claims pressures facing HNW insurers
- Underinsurance is a problem in the specialist home insurance market
- Distribution and Targeting HNW Customers
- Emerging market segments and the “great wealth transfer”
- Table Figure 5: Emerging HNW customer segments
- Personalized service is key, but HNW individuals’ expectations are changing
- Table Figure 6: Wealth management clients are seeking more hybrid and digital interaction
- Implications for insurers
- Table Figure 7: Data-driven insights that can transform HNW insurance propositions
- Emerging market segments and the “great wealth transfer”
- Competitor Dynamics
- The HNW competitor landscape is shifting
- Table Figure 8: The UK HNW competitor landscape is shifting, with several insurers targeting growth in this segment
- Established HNW insurers face pressure from major composites with ambitious aims
- A number of other specialist providers are also targeting growth
- New entrants and market changes
- The HNW competitor landscape is shifting
- The Future of the Market
- UK HNW home insurance market growth is forecast to stabilize through to 2026
- Table Figure 9: The number of UK HNW individuals will rise by an average of 4.5% a year over 2022–26
- Table Number of UK MNW and HNW individuals by liquid assets, 000s, 2022–26
- Table Figure 10: Growth in HNW home insurance GWP will slow through to 2026 as inflationary pressures ease
- Table UK HNW and MNW home insurance market GWP, GBP million, 2022–26
- Other forces that will impact the future of the HNW insurance market
- UK HNW home insurance market growth is forecast to stabilize through to 2026
- Appendix
- Abbreviations and acronyms
- Methodology
- Secondary sources
- Further reading
- About GlobalData
- Contact Us
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