United Kingdom (UK) Private Motor Insurance Market Analysis and Forecast to 2025

Gross written premiums in the UK private motor insurance market declined in 2020. This was caused by a fall in both the average cost of premiums and the total number of policies written. The number of vehicles on the roads in 2020 fell significantly on the previous year as national lockdowns and other national restrictions, introduced to curb the spread of COVID-19, kept consumers at home for long periods of the year, reducing traffic, collisions, and claims. The Civil Liability Act is expected to reduce bodily injury claims, which should push premiums down. The demand for usage-based insurance products continues to grow, and insurers must react to this change in the market to remain competitive. Going forward, the market is expected to recover slowly, a result of reduced mobility in the short term, maintaining a low level of road accidents and claims for now, which will maintain lower premium prices than before the pandemic.

This report analyzes UK private motor insurance, looking at market size as well as changes in premiums, claims, road casualties, the motor parc, regulations, and future opportunities. It discusses the impact of COVID-19 on driving behavior and the further implications related to claims. It also looks at the leading competitors and how the market is likely to change due to telematics and driverless cars, as well as providing future forecasts of market size up to 2025.

Scope

• Average premiums fell to £465, compared to £472 in 2019.
• Direct Line remains the market leader, while Allianz is now the second biggest player after completing its acquisition of LV=.
• The cost of personal injury remains the biggest claim cost to insurers at an average of £12,009 per claim and a total cost of over £3bn to the industry.
• Road traffic accidents fell heavily in 2020, as did total claims, a result of the two national lockdowns in 2020.

Reasons to Buy

• Determine the underlying factors affecting the private motor market.
• Understand the impact of new regulations in the industry.
• Observe the actions and reactions of incumbent market leaders and insurtech newcomers.
• Recognize the changes in consumer and provider behavior as the market begins to emerge from the COVID-19 pandemic.
• Anticipate new challenges and changes to the market going forward.