United Kingdom (UK) Private Motor Insurance Market Size, Trends, Competitor Dynamics and Opportunities
Summary
This report analyzes the UK private motor insurance market, looking at drivers of uptake. It explores the claims landscape in 2022, 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 - including inflation as well as emerging technologies such as artificial intelligence and autonomous vehicles - are also examined.
We expect gross written premiums (GWP) in the UK private motor insurance market to grow by 19.1% in 2023f, following an increase of 1.7% in 2022. As a result, the market will reach a value of GBP14.71 billion by the end of 2023e. Meanwhile, in 2022, the total number of claims notified and gross claims incurred increased by 17.1% and 13.3% respectively. Claims inflation remains an issue for insurers, attributed to factors such as supply chain issues, labor shortages, and macroeconomic conditions. Admiral remained the market leader in 2022, while the top five players increased their total market share to 55%.
Scope
- The UK private motor insurance market is expected to grow by 19.1% in 2023e, following a 1.7% increase in 2022.
- Average premiums remained unchanged from 2021 to 2022, standing at GBP434.
- Total policies written increased by 0.4% from 2021 to 2022.
- The total number of claims notified increased by 17.1% from 2021 to 2022, while gross claims paid increased by 13.3%.
- 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.
- 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 2022 and 2023
- Table Figure 1: The private motor insurance industry increased by 1.7% in 2022
- Table Figure 2: The average private motor insurance premium remained at GBP434 in 2022
- Average premiums began to rise towards the end of 2022
- Table Figure 3: Average premiums rose by 20.1% from Q2 2022 to Q2 2023
- Table Figure 4: Consumer price inflation is expected to have peaked in 2022
- The motor claims landscape in 2022
- Table Figure 5: Claims notified and claims frequency both increased in 2022
- Table Figure 6: The number of claims settled increased by 13.1% from 2021 to 2022
- Table Number of claims settled, average cost, and gross claims paid, by claim type, 2018–22
- RTAs and their link to claims
- Table Figure 7: The number of claims recorded by the CRU fell by 5.2% in 2022
- Table Figure 8: Casualty numbers increased from 2021 to 2022
- Table Figure 9: The average petrol price increased by 23.8% from 2021 to 2022
- Table Figure 10: New car registrations fell by 1.5% in 2022
- Table Figure 11: EVs are becoming increasingly popular in the UK
- The private motor insurance market grew in 2022 and 2023
- Competitor Dynamics
- Admiral remains the market leader
- Table Figure 12: Admiral strengthened its position as market leader in the private motor insurance market
- Table GWP and market share of the top 10 private motor insurers in the UK, 2020–22
- Analysis of the market leaders
- Newcomers and insurtechs gain traction
- Admiral remains the market leader
- The Market Going Forward
- The UK private motor insurance market is expected to reach GBP15.01 billion by 2027
- Table Figure 13: UK private motor insurance GWP is expected to reach GBP15.01 billion in 2027
- Future opportunities in the private motor insurance market
- Table Figure 14: Younger consumers are more likely to purchase telematics insurance policies
- Table Figure 15: CCC Intelligent Solutions automates the claims process using AI technology
- Connected cars, the Internet of Things, and smart motorways
- The EV market is expected to keep growing
- Table Figure 16: Industry insiders cited the cost of repairs as the biggest challenge for insurers in the move to EVs
- Fully autonomous vehicles will disrupt motor insurance
- The UK private motor insurance market is expected to reach GBP15.01 billion by 2027
- Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
- Table Figure 17: Forecasting methodology
- Secondary sources
- Further reading
- About GlobalData
- Contact Us
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook