Commercial Property Insurance in the UK - Key Trends and Opportunities to 2017

PR Newswire

LONDON, May 21, 2014 /PRNewswire/ -- Reportbuyer.com has added a new market research report:

Commercial Property Insurance in the UK – Key Trends and Opportunities to 2017

http://www.reportbuyer.com/banking_finance/insurance/property/commercial_property_insurance_uk_key_trends_opportunities_2017.html

Synopsis

• The report provides market analysis, information and insights into the UK commercial property insurance business
• It provides a snapshot of market's size and segmentation
• It offers a comprehensive analysis of claims, drivers and market outlook
• It analyzes distribution channels
• It details deals, news and regulatory developments

Summary

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.

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.

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 Buy

• Gain an understanding of the UK commercial property 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

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


Table of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
3.1 Market Size
3.1.1 Commercial property
3.1.2 Consequential loss
3.1.3 Contractors or engineering risks
3.1.4 Penetration and density
3.2 Claims
3.2.1 Claims review
3.2.2 Claims outlook
3.3 Market Drivers
3.4 Market Outlook
3.5 Distribution Channels
3.5.1 Distribution outlook
3.6 Reinsurance
4 Competitive Landscape
4.1 Profitability
4.1.1 Investment returns
4.1.2 Profitability outlook
4.2 Review – The Best Performers of 2012
4.3 Product Innovation
4.4 Commercial Property Insurance – SWOT Analysis
5 Porter's Five Forces Analysis
5.1 Bargaining Power of Suppliers: Low
5.2 Bargaining Power of Buyers: Medium
5.3 Barriers to Entry: Medium
5.4 Intensity of Rivalry: Medium to High
5.5 Threat of Substitution: Low
6 Deals
6.1 Towergate Sells Commercial Property Division
6.2 Aviva Joins the PowerPlace Panel for Commercial Property
6.3 Covéa Extends Deal with Risk Control Firm
6.4 Insurers Move Into Takaful
6.5 QBE Becomes Sole Capacity Provider for Wholesale Broker
7 News
7.1 BIBA Flags Concerns over Flood Re
7.2 FM Global Named Best Commercial Property Insurer
7.3 FM Global's Risk Innovation
7.4 Increase in Commercial Property Insurance Complaints
7.5 Axa Survey Reveals Gaps in the Market
8 Regulation and Compliance
8.1 Upcoming Regulations
8.1.1 Flood Re
8.1.2 Review of the Riot (Damages) Act
8.1.3 Solvency II
9 Macroeconomic Backdrop
9.1 Real GDP Growth
9.2 Commercial Property Market Dynamics
9.3 Private Sector Lending
9.4 Interest Rates
9.5 Business Demographics
10 Company Profiles
10.1 ACE European Group Ltd – Company Overview
10.1.1 ACE European Group Ltd – key facts
10.1.2 ACE European Group Ltd – main products
10.1.3 ACE European Group Ltd – main competitors
10.1.4 ACE European Group Ltd – key employees
10.2 Allianz Insurance Plc – Company Overview
10.2.1 Allianz Insurance Plc – key facts
10.2.2 Allianz Insurance Plc – main products
10.2.3 Allianz Insurance Plc – main competitors
10.2.4 Allianz Insurance Plc – key employees
10.3 Aviva Plc – Company Overview
10.3.1 Aviva Plc – key facts
10.3.2 Aviva Plc – main products
10.3.3 Aviva Plc – main competitors
10.3.4 Aviva Plc – key employees
10.4 Axa UK Plc – Company Overview
10.4.1 Axa UK Plc – key facts
10.4.2 Axa UK Plc – main products
10.4.3 Axa UK Plc – main competitors
10.4.4 Axa UK Plc – key employees
10.5 FM Insurance Company Ltd – Company Overview
10.5.1 FM Insurance Company Ltd – key facts
10.5.2 FM Insurance Company Ltd – main products
10.5.3 FM Insurance Company Ltd – main competitors
10.5.4 FM Insurance Company Ltd – key employees
10.6 Great Lakes Reinsurance (UK) Plc – Company Overview
10.6.1 Great Lakes Reinsurance (UK) Plc – key facts
10.6.2 Great Lakes Reinsurance (UK) Plc – main products
10.6.3 Great Lakes Reinsurance (UK) Plc – main competitors
10.6.4 Great Lakes Reinsurance (UK) Plc – key employees
10.7 QBE Insurance (Europe) Ltd – Company Overview
10.7.1 QBE Insurance (Europe) Ltd – key facts
10.7.2 QBE Insurance (Europe) Ltd – main products
10.7.3 QBE Insurance (Europe) Ltd – main competitors
10.7.4 QBE Insurance (Europe) Ltd – key employees
10.8 Royal & Sun Alliance Insurance Plc – Company Overview
10.8.1 Royal & Sun Alliance Insurance Plc – key facts
10.8.2 Royal & Sun Alliance Insurance Plc – main products
10.8.3 Royal & Sun Alliance Insurance Plc – main competitors
10.8.4 Royal & Sun Alliance Insurance Plc – key employees
10.9 XL Group Plc – Company Overview
10.9.1 XL Group Plc – key facts
10.9.2 XL Group Plc – main products
10.9.3 XL Group Plc – main competitors
10.9.4 XL Group Plc – key employees
10.10 Zurich Insurance Plc – Company Overview
10.10.1 Zurich Insurance Plc – key facts
10.10.2 Zurich Insurance Plc – main products
10.10.3 Zurich Insurance Plc – main competitors
10.10.4 Zurich Insurance Plc – key employees
11 Statistics
11.1 Review Period: 2008–2012
11.2 Forecast Period: 2013–2017
12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetric's Services
12.5 Disclaimer


List of Tables

Table 1: Insurance Industry Definitions
Table 2: UK Commercial Property Insurance – Market Summary (GBP Thousand), 2008–2012
Table 3: UK Commercial Property Insurance – Market SWOT Analysis
Table 4: Recent and Upcoming Regulatory Changes
Table 5: ACE European Group Ltd, Key Facts
Table 6: ACE European Group Ltd, Main Products
Table 7: ACE European Group Ltd, Key Employees
Table 8: Allianz Insurance Plc, Key Facts
Table 9: Allianz Insurance Plc, Main Products
Table 10: Allianz Insurance Plc, Key Employees
Table 11: Aviva Plc, Key Facts
Table 12: Aviva Plc, Main Products
Table 13: Aviva Plc, Key Employees
Table 14: Axa UK Plc, Key Facts
Table 15: Axa UK Plc, Main Products
Table 16: Axa UK Plc, Key Employees
Table 17: FM Insurance Company Ltd, Key Facts
Table 18: FM Insurance Company Ltd, Main Products
Table 19: FM Insurance Company Ltd, Key Employees
Table 20: Great Lakes Reinsurance (UK) Plc, Key Facts
Table 21: Great Lakes Reinsurance (UK) Plc, Main Products
Table 22: Great Lakes Reinsurance (UK) Plc, Key Employees
Table 23: QBE Insurance (Europe) Ltd, Key Facts
Table 24: QBE Insurance (Europe) Ltd, Main Products
Table 25: QBE Insurance (Europe) Ltd, Key Employees
Table 26: Royal & Sun Alliance Insurance Plc, Key Facts
Table 27: Royal & Sun Alliance Insurance Plc, Main Products
Table 28: Royal & Sun Alliance Insurance Plc, Key Employees
Table 29: XL Group Plc, Key Facts
Table 30: XL Group Plc, Main Products
Table 31: XL Group Plc, Key Employees
Table 32: Zurich Insurance Plc, Key Facts
Table 33: Zurich Insurance Plc, Main Products
Table 34: Zurich Insurance Plc, Key Employees
Table 35: Commercial Property Insurance (GBP Thousand), 2008–2012
Table 36: Commercial Property Insurance (GBP Thousand), 2013–2017



List of Figures

Figure 1: UK Commercial Property Insurance – Gross Written Premiums (GBP), 2008–2012
Figure 2: Commercial Property Gross Written Premiums (GBP), 2008–2012
Figure 3: Consequential Loss Gross Written Premiums (GBP), 2008–2012
Figure 4: Contractors or Engineering Risks Gross Written Premiums (GBP), 2008–2012
Figure 5: UK Commercial Property Insurance – Penetration Rate (%) and Density (GBP), 2008–2012
Figure 6: UK Commercial Property Insurance – Net Claims Paid and Incurred (GBP), 2008–2012
Figure 7: Crime Against Business, 2002 and 2012
Figure 8: UK Business Investment Growth, 2004–2012
Figure 9: UK Commercial Property Insurance – Gross Written Premiums Forecast (GBP) 2013–2017
Figure 10: Commissions Paid by UK Commercial Property Insurers (GBP), 2008–2012
Figure 11: UK Commercial Property Insurance – Reinsurance Ceded (GBP Million), 2008–2012
Figure 12: Combined Operating Ratio for Total UK Commercial Property Insurance (%)
Figure 13: Loss and Expenses Ratios for UK Commercial Property Insurance Business (%), 2008–2012
Figure 14: UK Inflation – Construction and Repair Costs (%), 2004–2012
Figure 15: Market Shares of the 10-Leading UK Commercial Property Insurers (%) in 2012
Figure 16: UK Commercial Property Insurance – Five Forces Analysis
Figure 17: The UK's Insurance Regulatory Framework
Figure 18: Real GDP Growth (%), 2008–2017
Figure 19: Growth in Commercial Construction, 2004–2012
Figure 20: UK – Commercial Floor Space, 2004–2012
Figure 21: UK – Growth in Net Lending, 2005–2012
Figure 22: UK – Number of Private Sector Businesses, 2004–2013




Read the full report:
Commercial Property Insurance in the UK – Key Trends and Opportunities to 2017

http://www.reportbuyer.com/banking_finance/insurance/property/commercial_property_insurance_uk_key_trends_opportunities_2017.html

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: query@reportbuyer.com
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

 

 

Rates

View Comments (0)