Boston, MA -- (SBWIRE) -- 07/31/2013 -- Gross written premiums in the household insurance category rose by 0.6% annually in 2012, slowing from the expansion recorded in 2011. Premium income totaled GBP5.26 billion in 2012 and grew at a CAGR of 3.24% between 2008 and 2012. The strength of the housing market is a primary driver of demand for household insurance. 2012 saw slower growth in mortgage lending and house prices, and a slump in private housing construction. The soft recovery in the UK housing market, coupled with the fragility in the wider economy, will remain a challenge for the household insurance category. A strong rebound in economic growth is not expected to materialize until 2014, but as this recovery gains traction, growth rates in premiums will also pick up. Claims paid by household insurers jumped by 11.3% in 2012, in line with an increase in payouts for flood damage after heavy rainfall. The UK has experienced two of its wettest years on record since 2008, a factor behind the 19% rise in claims paid between 2008 and 2012. Despite high claims payouts and a fall in investment income, household insurers remained profitable during the review period. This strong underwriting base faces challenges ahead, however, as the model of distribution shifts in favor of price-comparison websites.

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Key Highlights

- Market performance in terms of premium growth slowed in 2012
- The housing market has displayed renewed weakness
- Growth in claims has surged but the category has remained profitable
- A deal on flooding is the biggest hurdle
- Consumers will continue to seek competitive prices
- Growth in gross written premiums expected to settle around 2.5% by 2017

Scope

- This report provides a comprehensive analysis of the household insurance market in the UK
- It provides historical values for the UK's household insurance market for the report's 2008-2012 review period and forecast figures for the 2012-2017 forecast period
- It analyses the various distribution channels for household insurance products in the UK
- Using Porter's industry-standard "Five Forces" analysis, it details the competitive landscape in the UK for the household insurance business
- It profiles the top household insurance companies in the UK and outlines the key regulations affecting them

Reasons to Get This Report

- Gain an understanding of UK household insurance market size
- Learn about the performance of claims, market drivers and distribution channels
- Understand the competitive landscape in terms of performance, profitability and product innovation
- Find out more about key deals and recent developments in the market
- Gain insight into consumer loyalty to brands and the use of comparison websites

Companies Mentioned in this Report: Ace European Group Ltd, Ageas (UK) Limited, Aviva plc, AXA UK plc, Direct Line Insurance Group Plc, Hiscox Ltd, Legal & General Group Plc, National Farmers Union Mutual Insurance Society, Royal & Sun Alliance Insurance Plc, Zurich Insurance Plc

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