MarketResearchReports.Biz
presents this most up-to-date research on "UK Private Motor
Insurance: Market Dynamics & Opportunities 2017".
"UK
Private Motor Insurance:
Market Dynamics & Opportunities 2017", analyzes the UK
private motor insurance market, looking at market size as well as
changes in premiums, claims, road casualties, the motor parc,
regulations, and opportunities. It discusses competitors in the
market, how the market is likely to change due to telematics and
driverless cars, and provides future forecasts of market size up to
2021.
The
private motor insurance market grew significantly in GWP in 2016.
This was due to increasing premiums, which reached a record high
because of an insurance premium tax rise, increasing car repair
costs, and the change of the personal injury discount rate from 2.5%
to -0.75%. The latter move resulted in higher claims costs for
insurers, which impacted their profitability; they responded by
raising premiums. However, following consultation the discount rate
is expected to soften, and it is hoped any reforms will reduce the
cost of claims for insurers and enable them to pass on savings to
consumers. The Civil Liability Bill is also set to reform motor
personal injury claims. It will raise the limit in the small claims
track to 5,000 for road traffic accident claims, and will
additionally introduce claims tariffs and ban pre-medical offers. But
it remains uncertain when reforms will be introduced - not to mention
how successful they will be.
Have Any Query? Ask Our Expert @
https://www.marketresearchreports.biz/sample/enquiryBuy/1306844
Scope
- GWP for the private motor
insurance market grew by 12.4% to 12.2bn in 2016.
- Bodily injury claims are the
highest cost for motor insurers, with the average claim costing
10,799.
- Direct Line and Aviva are the
leading private motor insurers, with market shares of 12.4% and 12.1%
respectively in 2015.
Reasons to buy
- Ensure you remain competitive
as new innovations and insurance models begin to enter the market.
- Be prepared for how
regulation will impact the private motor insurance market over the
next few years.
- Benchmark yourself against
competitors.
Table Of Contents
1. EXECUTIVE SUMMARY 3
1.1. The success of the Civil Liability Bill and a review of the
discount rate are crucial to reduce premiums 3
1.2. Key findings 3
1.3. Critical success factors 3
2. MARKET DYNAMICS 10
2.1. Introduction 10
2.2. The private motor insurance market continued to grow in 2016 10
2.2.1. The private motor market grew by 12.4% to reach 12.2bn in GWP
in 2016 10
2.2.2. Comprehensive policies make up the majority of the private
motor market 11
2.2.3. The Lloyds of London market accounts for 1.4% of private motor
insurance GWP 12
2.3. Motor insurance premiums have reached an all-time high 12
2.3.1. Comprehensive and non-comprehensive premiums are both
following an upwards trend 13
2.3.2. IPT has risen to 12% 16
2.3.3. The requirement to notify customers of last years premium will
encourage shopping around 17
2.4. The discount rate has increased the cost of claims 18
2.4.1. The discount rate was changed from 2.5% to -0.75% 18
2.4.2. Insurers profits have been hit by the rate change 18
2.4.3. The Ogden rate change has impacted profitability 19
2.4.4. Insurers results highlight the impact of the discount rate
change on profits 19
2.4.5. The MoJ is consulting on how the discount rate should be set
going forward 20
2.5. Gross claims paid continued to increase in 2016 20
2.5.1. Claims notified remained steady in 2016 20
2.5.2. Personal injury motor claims are on the rise 22
2.5.3. Bodily injury claims have the highest cost for motor insurers
23
2.5.1. Whiplash claims account for up to 80% of motor personal injury
claims numbers 25
2.5.2. Fraud remains a significant issue 26
2.5.3. Motor personal injury claims remain high, while RTA claims are
in decline 26
2.5.4. Most RTA casualties are car occupants, but these are the least
vulnerable road users 27
2.5.5. The number of pedal cyclist casualties has reached a five-year
low 27
2.5.6. Car and taxi use reached an all-time high 28
2.5.7. The UK motor parc continues to grow 30
3. COMPETITOR DYNAMICS 32
3.1. Direct Line and Aviva hold the largest shares of private motor
32
3.1.1. Direct Line and Aviva currently lead the private motor market
32
3.1.2. Direct Line has been the top private motor insurer for the
past three years 33
3.1.3. Aviva offers standard insurance in addition to short-term,
learners, and telematics policies 34
3.1.4. Ageas offers four car insurance policies, which can be
purchased through brokers 35
3.1.5. LV= and Allianz are combining to form a joint venture in
personal insurance 36
3.1.6. Mobile network providers are entering the telematics market 36
3.1.7. Start-ups are entering the insurance space with telematics,
car sharing, P2P, and usage-based policies 37
4. THE MARKET GOING FORWARD 38
4.1. The Civil Liability Bill aims to reform personal injury motor
claims 38
4.1.1. The benefits of LASPO did not fully materialize 38
4.1.2. Initial proposals aimed to increase the small claims track
limit and remove general damages for minor soft tissue injuries 38
4.1.3. The MoJ has published its first response to the consultation
on reforms 38
4.1.4. The Prisons and Courts Bill was scrapped due to the snap
general election 39
4.1.5. The Queens Speech following the election introduced a Civil
Liability Bill 39
4.1.6. There has been a split reaction to the Civil Liability Bill 39
4.1.7. The Civil Liability Bill will save customers an estimated 35
on motor insurance premiums 40
4.1.8. The small claims limit will increase to 5,000 for RTA claims
40
4.1.9. A tariff system is being introduced for RTA-related soft
tissue injury claims 41
4.1.10. Claims will not be settled without a MedCo medical evidence
report 42
4.2. Proposed reforms will impact motor insurance profitability 43
4.2.1. Tariffs and the small claims track limit increase will have a
significant impact 43
4.2.2. The increase in the small claims track could affect 70-80% of
claims 44
4.2.3. Legal costs could be reduced by up to 50% 45
4.2.4. The introduction of tariffs could reduce whiplash claims costs
by 1bn 45
4.3. New legislation could lead to falling premiums and market GWP 45
4.3.1. The future of the private motor insurance market is uncertain
45
4.3.2. Unless claims costs fall, motor insurance premiums and GWP
will remain high 46
4.4. Telematics policies are still mainly held by under 25s 47
4.4.1. Technology will take time to penetrate the market 47
4.4.2. There are over 750,000 live telematics policies in the UK, but
penetration is low 47
4.4.3. Most telematics policies are held by under 25s, but popularity
is increasing across all ages 48
4.4.4. Telematics policies are predicted to be opt-out by 2025 48
4.4.5. Average speed could be used to assess risk instead of speed
limits 49
4.4.6. Dash cams could be the new telematics 49
4.5. Driverless cars are estimated to become mainstream in 2045 50
4.5.1. The government is supporting the development of driverless
cars 51
4.5.2. Motorists with driverless cars will be required to have dual
insurance policies 51
4.5.3. Autonomous car manufacturers are entering the insurance market
for driverless cars 52
4.5.4. Motor insurers are looking to partner with driverless car
manufacturers 52
4.5.5. More than half of new UK cars are now sold with autonomous
features 53
4.5.6. Electric cars will hold a greater share of the motor parc in
the future 54
4.5.7. There will be a divided motor parc as autonomous features gain
popularity 54
4.5.8. The need for personal car insurance could diminish 54
4.6. Usage-based, car sharing, and P2P policies are being launched 54
4.6.1. The majority of new, innovative policies target millennials 54
4.6.2. Guevara launched P2P insurance in the UK, but it has yet to
take off 55
4.6.3. Motor insurers are beginning to see the opportunity in car
sharing 55
4.6.4. Usage-based pay-as-you-go and pay-per-mile car insurance
policies are a growing concept 56
4.6.5. The insurance industry is concerned how the GDPR will impact
underwriting 57
5. APPENDIX 58
5.1. Abbreviations and acronyms 58
5.2. Bibliography 58
5.3. Further reading 62
About
us
MarketResearchReports.biz
is the most comprehensive collection of market research reports.
MarketResearchReports.Biz services are specially designed to save
time and money for our clients. We are a one stop solution for all
your research needs, our main offerings are syndicated research
reports, custom research, subscription access and consulting
services. We serve all sizes and types of companies spanning across
various industries.
Contact
Mr.
Nachiket
State
Tower
90
Sate Street, Suite 700
Albany,
NY 12207
Tel:
+1-518-621-2074
No comments:
Post a Comment