Market Research Reports, Inc. has announced the addition of “Commercial Motor Insurance in the UK, Key Trends and Opportunities to 2018” research report to their offering.
Lewes, DE -- (SBWIRE) -- 04/08/2014 -- The United Kingdom commercial motor insurance category has recorded growth since 2008, despite the synchronous recessionary backdrop. Gross written premiums rose at an annual rate of 7.2% in 2012, to a total of GBP3.4 billion and a five-year high. During the review period (2008–2012), premiums posted a compound annual growth rate (CAGR) of 5.50%.
The recession resulted in faltering business confidence, lenders reducing the availability of credit, and a slump in capital spending ? including investment in commercial vehicles. Faced with a reduction in the underlying demand for commercial motor insurance, rate rises in the category were largely due to insurers hiking rates to protect profits.
The total combined operating ratio for insurers operating in the category remained above 100% during the review period and stood at a five-year low of 106% in 2012, indicating long-standing profitability struggles. Premium increases enacted during the review period have not been able to offset rising claims payouts, an increase in operating expenses, and record-low interest rates limiting returns on investments. The category is not expected to return to profit until 2015.
Motor insurance claims rose sharply during the review period, reflecting a higher incidence of fraudulent claims related to staged accidents and the resulting payouts for personal injury and whiplash claims. The number of motor-related personal injury compensation cases registered with the government’s Compensation Recovery Unit surged in the five years to 2012, in contrast to a 15% fall in road traffic accidents during the period.
The motor insurance industry has collectively prioritized a significant reduction in fraud, introducing measures which include the development of software and databases to improve core risk underwriting, as well as systems to detect false or inflated claims. In addition, the growing use of telematics in commercial vehicle policies and the implementation of the Legal Aid, Sentencing and Punishing of Offenders Act (LASPO) in April 2013 will also have a mitigating effect on commercial motor claims.
Browse this report: http://www.marketresearchreports.com/timetric/commercial-motor-insurance-uk-key-trends-and-opportunities-2018
The strengthening UK economy has already begun to spur an increase in commercial vehicle registrations, and the Department of Transport forecasts that goods vehicles will be the fastest-growing category of road traffic to 2020. The revival in demand will support a CAGR of 6.23% for gross written premiums over the forecast period (2014?2018), up to a peak value of GBP4.52 billion in 2018. Insurers’ overconfidence in the cost-saving effects of the LASPO bill will limit growth in 2014, before rates are adjusted upwards from 2015.
The report provides market analysis, information and insights into the UK commercial motor insurance insurance business, and offers:
- A snapshot of the market's size and market segmentation
- Comprehensive analysis of claims, drivers and market outlook
- Analysis of distribution channels
- Deals, news and regulatory developments
- This report provides market analysis, information and insights into the UK commercial motor 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 Buy
- Gain an understanding of the UK commercial motor 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
- Performance defied difficult economic conditions
- The recession constrained investment in commercial vehicles
- Insurers in the category have struggled to make a profit
- Claims costs have risen sharply
- Measures to combat fraud are expected to alleviate the claims burden
- Favorable factors will drive strong growth from 2015
Spanning Over 70 pages, 36 tables and 24 figures “Commercial Motor Insurance in the UK, Key Trends and Opportunities to 2018” report covering The Market Analysis, Competitive Landscape, Porter’s Five Forces Analysis, Deals, News, Regulation and Compliance, Macroeconomic Backdrop, Company Profiles, Statistics, Appendix. The report covered 10companies - Ageas (UK) Ltd, Allianz Insurance Plc, Aviva Plc, Axa UK Plc, Direct Line Insurance Group Plc, Liverpool Victoria Friendly Society Ltd, National Farmers Union Mutual Insurance Society, QBE Insurance (Europe) Ltd, Royal & Sun Alliance Insurance Plc, Zurich Insurance Plc.
Find other Banking and Finance Reports at: http://www.marketresearchreports.com/banking-finance
Find other reports on United Kingdom Market: http://www.marketresearchreports.com/countries/united-kingdom
About Market Research Reports, Inc.
Market Research Reports, Inc. is the world's leading source for market research reports and market data. We provide you with the latest market research reports on global markets, key industries, leading companies, new products and latest industry analysis & trends.
For regular industry updates subscribe to our newsletter at: http://www.marketresearchreports.com/subscribe-to-newsletter
For latest market research presentations visit: http://www.marketresearchdocs.com