Fast Market Research

"Commercial Property Insurance in the UK - Key Trends and Opportunities to 2017" Now Available at Fast Market Research

New Insurance research report from Timetric is now available from Fast Market Research

 
Repost This

Boston, MA -- (SBWIRE) -- 03/11/2014 -- Gross written premiums in the commercial property insurance category recorded sustained growth throughout the review period (2008-2012), rising at a compound annual growth rate (CAGR) of 6.79%. Premiums increased at an annual rate of 6.8% in 2012, reaching a total of GBP6.72 billion; the highest level in five years.

Commercial property insurance claims paid declined by 5.5% in 2012, but this belies the rapid growth recorded since 2008. Payouts rose at a CAGR of 57.29% over the five years to 2012, while claims incurred increased at a CAGR of 28.61% during the same period. The UK has experienced frequent flooding since 2000, including two of the wettest years on record since 2008.

Despite weakness in the commercial construction market and flagging business sentiment due to poor economic conditions, the rise in premiums was driven by high claims related to severe weather and instances of civil unrest. Tentative economic recovery and improving business conditions drove growth towards the end of the review period.

View Full Report Details and Table of Contents

A large claims burden, limited investment returns due to the UK's low interest rate environment, and rising expenses have hindered the profitability of insurers in the category. A combined operating ratio of 111.8% was registered in 2012. Although it exceeds the 100% breakeven threshold, it marks an improvement on profitability levels recorded during 2008-2010.

Following the expiry of the Statement of Principles in June 2013, Flood Re was established by the government and the insurance industry. Unlike its predecessor, Flood Re excludes small businesses from guaranteed flood insurance at affordable prices, and will result in upward pressure on costs and premiums for insurers and their commercial customers.

Despite downside forces, growth in commercial property gross written premiums will prevail over the forecast period (2013-2017) as the economic recovery gains traction, business confidence improves and commercial construction activity increases. Premiums are expected to rise to GBP8.22 billion in 2017, representative of a CAGR of 4.34% over the five years from 2013.

Key Highlights

- Premium growth was maintained in 2012
- Commercial property insurance payouts have surged
- High claims led insurers to raise rates
- Profitability has been elusive
- Insurers will face headwinds following legislative changes
- Moderate growth in gross written premiums is expected

Scope

- This report provides market analysis, information and insights into the UK commercial property insurance business
- It provides a global snapshot of market size
- It analyses drivers and the outlook for the market
- It provides information on distribution channels
- It covers deals, news and regulatory developments

Reasons to Get This Report

Companies Mentioned in this Report: ACE European Group Ltd, Allianz Insurance Plc, Aviva Plc, Axa UK Plc, FM Insurance Company Ltd, Great Lakes Reinsurance (UK) Plc, QBE Insurance (Europe) Ltd, Royal & Sun Alliance Insurance Plc, XL Group Plc, Zurich Insurance Plc,

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Insurance research reports at Fast Market Research

You may also be interested in these related reports:

- Non-Life Insurance in China, Key Trends and Opportunities to 2017
- Non-Life Insurance in Austria, Key Trends and Opportunities to 2017: The Austrian non-life segments written premium value grew from EUR6.5 billion in 2008 to EUR7.1 billion in 2012.
- Non-Life Insurance in Argentina, Key Trends and Opportunities to 2017
- Non-Life Insurance in South Africa, Key Trends and Opportunities to 2017
- Non-Life Insurance in Hong Kong, Key Trends and Opportunities to 2017
- Non-Life Insurance in Romania, Key Trends and Opportunities to 2017
- Non-Life Insurance in Pakistan, Key Trends and Opportunities to 2017
- Non-Life Insurance in Venezuela, Key Trends and Opportunities to 2017
- Non-Life Insurance in Chile, Key Trends and Opportunities to 2017
- Non-Life Insurance in Portugal, Key Trends and Opportunities to 2017