United Kingdom (UK) SME Insurance - Competitor Dynamics 2023

United Kingdom (UK) SME Insurance - Competitor Dynamics 2023

Summary

This report identifies which insurers lead the way in the SME segment and examines how they are developing their propositions, while also highlighting how competitor positions vary between micro, small, and medium enterprises. It reveals which insurers are winning over brokers and with which companies SMEs are placing their business. Data is sourced primarily from GlobalData’s UK SME Insurance Surveys.

Economic challenges (including rising interest rates, supply chain disruptions, and high inflation) have presented small- and medium-sized enterprises (SMEs) with significant challenges in recent years. Yet the number of SMEs still increased by 0.8% in 2023, accounting for 99.9% of all private sector businesses in the UK. This growth highlights the importance of these companies as a source of business growth in the commercial insurance sector. Currently leading the market in SME insurance are Aviva and AXA. However, there are plenty of chances for success via specialization and differentiation due to the diverse nature of SMEs and their varying requirements depending on size and sector. Positive trends were observed in the insurance landscape among SMEs, with increased uptake observed for eight out of 16 products. Nonetheless, SMEs may want to re-evaluate their insurance cover in light of the difficult economic climate and rising operating expenses.

Scope

• Lloyds Bank narrowly leads the bancassurance space with a market share of 20.3%, over Barclays’ 20.2%.
• Brokers cited Aviva as the leading provider of packaged and non-packaged insurance cover for SMEs, making its broker channel an especially strong suit, given that 43.7% of SME business is conducted through the broker channel.
• The top two providers’ performances differ significantly depending on the product in terms of Net Promoter Score (NPS). AXA recorded a particularly poor year for NPS, possibly explaining its fall to second-largest SME provider.
• Size of business is directly correlated with demand for value-added services. Legal advice was accessed by 26.1% of SMEs in 2023; this figure increased to 47.5% of medium-sized businesses but was just 23.5% for sole traders.

Reasons to Buy

• Identify the leading players in the UK SME insurance market .
• Learn the providers of choice for SME insurance among brokers.
• Discover the strategies and Net Promoter Scores of the top SME insurers.
• Identify growth opportunities in the SME space.
• Find out which value-added services are in demand.