Motor Vehicle Insurance in the UK - Market Research Report (2014-2029)

Picking up the pace: Inflated claims costs underpin revenue growth in 2023-24

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Motor Vehicle Insurance revenue is forecast to dip at a compound annual rate of 1.9% over the five years through 2023-24 to £19.9 billion, including an estimated growth of 3.3% in the current year. Often, insurers invest the premiums earned from insurance activities to generate additional income. Since the Solvency II EU directive came into force on January 1 2016, profitability has been constrained as the level of regulation regarding investment picked up. This was worsened by changes to the Ogden rate in March 2017, which lifted the payout due to a claimant compared to the same settlement at the old rate. Rising tax rates in recent years has also resulted in less fruitful operating conditions.

Operators in this industry provide both private passenger and commercial insurance coverage. Motor vehicle insurance covers the insured party for any loss incurred through damage to property or person as the result of a car accident, including theft.