Research and Markets: The UK Private Motor Insurance Market 2014 - Key Findings & Forecasts

Business Wire

DUBLIN--(BUSINESS WIRE)--

Research and Markets (http://www.researchandmarkets.com/research/d7lx3l/the_uk_private) has announced the addition of the "The UK Private Motor Insurance Market" report to their offering.

The introduction of the LAPSO Act 2012 should result in a reduction in the cost and number of personal injury and fraudulent claims. However, significant reductions in policy premiums since the introduction of the LAPSO Act suggests that some insurers are being too optimistic concerning the expected reductions in claims costs and that premium rates are falling too fast and too far.

Remedies proposed by the Competition Commission in its inquiry into the private motor insurance market will, if adopted, result in a significant reduction in claims costs for those insurers experiencing inflated subrogated claims costs, and will result in a fall in profitability for those insurers pursuing a strategy of profiting from referral fees and subrogated claims cost inflation.

KEY FINDINGS

- 84% of Motorists Want Motor Insurers to be Regulated

- 50% of motorists think that fraudulent claims are the main cause of higher premiums

- 17% of motorists think that motor insurers make too much profit from motor insurance

- Underwriting profits eroded by increase in commission payments and expenses

- Only 49% of motorists completely trust price comparison websites

- 47% of motorists currently use a price comparison website, 59% intend to use one in future

- Gocompare is the PCW market leader with a 20.4% share but Comparethemarket's share is rising

- Only 12% of motorists are interested in telematics- based insurance policies

- Admiral and LV= are gaining market share over Direct Line and Churchill

- 6.9 million motorists changed insurer in the last year, mainly due to premium increases

Market Forecast

- Notwithstanding an economic collapse and large increases in premiums, the number of private cars in use is forecast to rise by nearly 4% between 2013 and 2018 from 25.88 million to 26.84 million, but with the number of cars insured (exposure) rising by 10% from 23.55 million to 25.90 million.

- An increase in the number of cars in use should be sustained by rising private new car sales supported by discounted new car finance products. As the economic recovery becomes more deep-rooted, disposable incomes rise, albeit moderately, the proportion of cars that are uninsured will begin to fall from 91.0% in 2013 to 96.5% in 2018.

Key Topics Covered:

1. Travel Trends

2. The UK Car Parc 2003-2012

3. Car Ownership 2003-2012

4. New and Used Car Sales 2003-2012

5. The Motor Insurance Market 2003-2012

6. The Insurance Consumer

7. Conclusions and Outlook

8. Market Forecast 2013-2018

Companies Mentioned

  • AIG Europe (formerly Chartis)
  • Advantage (Hastings)
  • Ageas (Tesco, Groupama)
  • Aioi Nissay Dowa Ins Co of Europe
  • Allianz
  • Amlin
  • Aviva Group (formerly NU)
  • Axa (inc Swiftcover)
  • Chaucer (Hanover Ins Grp)
  • Collingwood
  • Covéa Group (MMA, Provident)
  • Direct Line Group, (Churchill, UKI, NIG)
  • Enterprise Insurance Co
  • KGM
  • LV Group (LV=, Highway)
  • Liberty (Lloyds Syndicate 4472)
  • Liberty Mutual
  • Markerstudy group (inc Zenith, Link)
  • NFU Mutual
  • Novae Group
  • Octagen
  • QBE
  • RSA (inc More Than)
  • Service Underwriting
  • Skyfire = First Central
  • Southern Rock (Brightside, eCar, Eldon)
  • The Co-operative Insurance
  • Tradewise
  • Tradex
  • Zurich

For more information visit http://www.researchandmarkets.com/research/d7lx3l/the_uk_private

Contact:
Research and Markets
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Insurance, Auto Insurance

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