Boston, MA -- (SBWIRE) -- 01/06/2014 -- Creditor insurance protects policyholders against the risk of debt non-payment in the event of sickness or unemployment. The category has been thrust into an unfavorable spotlight following widespread controversy over the selling practices of payment protection policies by retail banks, the primary distributor of the product. The bank-led distribution model means that insurers constitute only a small proportion of the estimated GBP5 billion market. Gross written premiums reported in annual regulatory returns totaled GBP711 billion in 2012, and fell by 7.9% from a year earlier. Underscoring the process of consolidation in the category, premiums have fallen at a compound annual growth rate (CAGR) of -7.4% since 2008. The review period was characterized by recession and high unemployment. Despite economic uncertainty and rising job insecurity, which should have supported demand for creditor insurance, growth in the category was impaired by a combination of regulatory intervention, negative press coverage and customer resentment. In addition, lengthy investigations and a costly redress program triggered banks to withdraw from the distribution process.

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Key Highlights

- Creditor insurance has a tarnished image
- Premium growth has been on a downward trend
- Customer complaints soared and banks withdrew from the market
- Regulatory intervention spurred a modification of the products on offer
- Reversing customer discontent will prove to be the largest obstacle
- Improving conditions mean premium growth will prevail

Scope

- This report provides market analysis, information and insights into the UK creditor 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

- Gain an understanding of UK creditor insurance market size
- Learn about the performance of market drivers and distribution channels
- Understand the competitive landscape in terms of performance, profitability and product innovation
- Find out more on key deals and recent developments in the market

Companies Mentioned in this Report: Aviva Plc, Direct Line Insurance Group Plc, Genworth Financial, Hiscox Ltd, Pinnacle Insurance Plc, Sterling Insurance Group Ltd

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