Household Insurance in the UK, Key Trends and Opportunities to 2017

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Jan 08, 2014, 10:05 ET

LONDON, Jan. 8, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

Household Insurance in the UK, Key Trends and Opportunities to 2017

Synopsis

- The report provides market analysis, information and insights into the UK household insurance business
- Provides a global snapshot of market size and market segmentation
- Comprehensive analysis of claims, drivers and market outlook
- Analysis of distribution channels
- Deals, news and regulatory developments
- Detailed analysis of changing consumer preferences

Summary

Gross written premiums in the household insurance category rose by 0.6% annually in 2012, slowing from the expansion recorded in 2011. Premium income totaled GBP5.26 billion in 2012 and grew at a CAGR of 3.24% between 2008 and 2012. The strength of the housing market is a primary driver of demand for household insurance. 2012 saw slower growth in mortgage lending and house prices, and a slump in private housing construction. The soft recovery in the UK housing market, coupled with the fragility in the wider economy, will remain a challenge for the household insurance category. A strong rebound in economic growth is not expected to materialize until 2014, but as this recovery gains traction, growth rates in premiums will also pick up. Claims paid by household insurers jumped by 11.3% in 2012, in line with an increase in payouts for flood damage after heavy rainfall. The UK has experienced two of its wettest years on record since 2008, a factor behind the 19% rise in claims paid between 2008 and 2012. Despite high claims payouts and a fall in investment income, household insurers remained profitable during the review period. This strong underwriting base faces challenges ahead, however, as the model of distribution shifts in favor of price-comparison websites.

Scope

- This report provides a comprehensive analysis of the household insurance market in the UK
- It provides historical values for the UK's household insurance market for the report's 2008–2012 review period and forecast figures for the 2012–2017 forecast period
- It analyses the various distribution channels for household insurance products in the UK
- Using Porter's industry-standard "Five Forces" analysis, it details the competitive landscape in the UK for the household insurance business
- It profiles the top household insurance companies in the UK and outlines the key regulations affecting them

Reasons To Buy

- Gain an understanding of UK household insurance market size
- Learn about the performance of claims, market drivers and distribution channels
- Understand the competitive landscape in terms of performance, profitability and product innovation
- Find out more about key deals and recent developments in the market
- Gain insight into consumer loyalty to brands and the use of comparison websites

Key Highlights
- Market performance in terms of premium growth slowed in 2012
- The housing market has displayed renewed weakness
- Growth in claims has surged but the category has remained profitable
- A deal on flooding is the biggest hurdle
- Consumers will continue to seek competitive prices
- Growth in gross written premiums expected to settle around 2.5% by 2017

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 Breakdown by policy type
3.1.2 Penetration and density
3.2 Claims
3.2.1 Claims review
3.2.2 Rising fraud
3.2.3 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 - Best Performers of 2012
4.3 Product Innovation
4.4 Household Insurance – SWOT Analysis
5 Porter's Five Forces Analysis
5.1 Bargaining Power of Suppliers: Low
5.2 Bargaining Power of Buyers: Medium to High
5.3 Barriers to Entry: Low
5.4 Intensity of Rivalry: Medium to High
5.5 Threat of Substitution: Low
6 Deals
6.1 Co-op Proposes a General Insurance Sell-Off
6.2 Axa and Prestige Extend Partnership
6.3 Legal & General Firms Its Ties With Newcastle Building Society
6.4 Hiscox Provides Insurance for Love Home Swap Clients
6.5 Ageas Joins Hood Group's Home Insurance Panel
7 News
7.1 Flood Insurance Extended
7.2 Flood Mapping Data Available Soon
7.3 Post Office Promises a Quick Quote
7.4 FCA Review to Focus on Household Claims
8 Regulation and Compliance
8.1 Recent Changes
8.1.1 Consumer Insurance (Disclosure and Representations) Act
8.2 Upcoming Regulations
8.2.1 Successor to the Statement of Principles
8.2.2 Riots Damages Act Reform
8.2.3 Riots Damages Act Reform
9 Consumer Perspective
9.1 Consumers Favor Renewal Over Switching
9.2 The Importance of Household Insurance
9.3 Price-Comparison Websites
10 Macroeconomic Backdrop
10.1 Real GDP Growth
10.2 Housing Market Dynamics
10.3 Inflation
10.4 Interest Rates
10.5 Demographics
11 Company Profiles
11.1 Ace European Group Ltd – Company Overview
11.1.1 Ace European Group Ltd – key facts
11.1.2 Ace European Group Ltd – main products
11.1.3 Ace European Group Ltd – main competitors
11.1.4 Ace European Group Ltd – key employees
11.2 Ageas (UK) Limited – Company Overview
11.2.1 Ageas (UK) Limited – key facts
11.2.2 Ageas (UK) Limited – main products
11.2.3 Ageas (UK) Limited – main competitors
11.2.4 Ageas (UK) Limited – key employees
11.3 Aviva plc – Company Overview
11.3.1 Aviva plc – key facts
11.3.2 Aviva plc – main products
11.3.3 Aviva plc – main competitors
11.3.4 Aviva plc – key employees
11.4 AXA UK plc – Company Overview
11.4.1 AXA UK plc – key facts
11.4.2 AXA UK plc – main products
11.4.3 AXA UK plc – main competitors
11.4.4 AXA UK plc – key employees
11.5 Direct Line Insurance Group Plc – Company Overview
11.5.1 Direct Line Insurance Group Plc – key facts
11.5.2 Direct Line Insurance Group Plc – main products
11.5.3 Direct Line Insurance Group Plc – main competitors
11.5.4 Direct Line Insurance Group Plc – key employees
11.6 Hiscox Ltd – Company Overview
11.6.1 Hiscox Ltd – key facts
11.6.2 Hiscox Ltd – main products
11.6.3 Hiscox Ltd – main competitors
11.6.4 Hiscox Ltd – key employees
11.7 Legal & General Group Plc – Company Overview
11.7.1 Legal & General Group Plc – key facts
11.7.2 Legal & General Group Plc – main products
11.7.3 Legal & General Group Plc – main competitors
11.7.4 Legal & General Group Plc – key employees
11.8 National Farmers Union Mutual Insurance Society – Company Overview
11.8.1 National Farmers Union Mutual Insurance Society – key facts
11.8.2 National Farmers Union Mutual Insurance Society – main products
11.8.3 National Farmers Union Mutual Insurance Society – main competitors
11.8.4 National Farmers Union Mutual Insurance Society – key employees
11.9 Royal & Sun Alliance Insurance Plc – Company Overview
11.9.1 Royal & Sun Alliance Insurance Plc – key facts
11.9.2 Royal & Sun Alliance Insurance Plc – main products
11.9.3 Royal & Sun Alliance Insurance Plc – main competitors
11.9.4 Royal & Sun Alliance Insurance Plc – key employees
11.10 Zurich Insurance Plc – Company Overview
11.10.1 Zurich Insurance plc – key facts
11.10.2 Zurich Insurance plc – main products
11.10.3 Zurich Insurance plc – main competitors
11.10.4 Zurich Insurance plc – key employees
12 Statistics
12.1 Review Period: 2008-2012
12.2 Forecast Period: 2013-2017
13 Appendix
13.1 Methodology
13.2 Contact Us
13.3 About Timetric
13.4 Disclaimer

List of Tables

Table 1: Insurance Industry Definitions
Table 2: UK Home Insurance – Market Summary (GBP Thousand), 2008–2012
Table 3: UK Household Insurance – Market SWOT Analysis
Table 4: Recent and Upcoming Regulatory Changes
Table 5: UK Home Insurance – Research Prior to Purchase
Table 6: Ace European Group Ltd, Key Facts
Table 7: Ace European Group Ltd, Main Products
Table 8: Ace European Group Ltd, Key Employees
Table 9: Ageas (UK) Ltd, Key Facts
Table 10: Ageas (UK) Ltd, Main Products
Table 11: Ageas (UK) Ltd, Key Employees
Table 12: Aviva Plc, Key Facts
Table 13: Aviva Plc, Main Products
Table 14: Aviva Plc, Key Employees
Table 15: Axa UK Plc, Key Facts
Table 16: Axa UK Plc, Main Products
Table 17: Axa UK Plc, Key Employees
Table 18: Direct Line Insurance Group Plc, Key Facts
Table 19: Direct Line Insurance Group Plc, Main Products
Table 20: Direct Line Insurance Group Plc, Key Employees
Table 21: Hiscox Ltd, Key Facts
Table 22: Hiscox Ltd, Main Products
Table 23: Hiscox Ltd, Key Employees
Table 24: Legal & General Group Plc, Key Facts
Table 25: Legal & General Group Plc, Main Products
Table 26: Legal & General Group Plc, Key Employees
Table 27: National Farmers Union Mutual Insurance Society, Key Facts
Table 28: National Farmers Union Mutual Insurance Society, Main Products
Table 29: National Farmers Union Mutual Insurance Society, Key Employees
Table 30: Royal & Sun Alliance Insurance Plc, Key Facts
Table 31: Royal & Sun Alliance Insurance Plc, Main Products
Table 32: Royal & Sun Alliance Insurance Plc, Key Employees
Table 33: Zurich Insurance Plc, Key Facts
Table 34: Zurich Insurance Plc, Main Products
Table 35: Zurich Insurance Plc, Key Employees
Table 36: Household Insurance (GBP Thousand), 2008–2012
Table 37: Household Insurance (GBP Thousand), 2013–2017

List of Figures

Figure 1: UK Household Insurance – Gross Written Premiums (GBP), 2008–2012
Figure 2: UK Household Insurance – Breakdown by Policy Type
Figure 3: UK Household Insurance – Penetration Rate and Density (%), 2008–2012
Figure 4: UK Household Insurance – Net Claims Paid and Incurred (GBP), 2008–2012
Figure 5: UK Household Insurance – Average Claims Payouts (GBP), 2011
Figure 6: UK Household Insurance – Burglary Statistics, 2001-2012
Figure 7: UK Household Insurance – Gross Written Premiums Forecast (GBP) 2013–2017
Figure 8: Commissions Paid by UK Household Insurers (GBP), 2008–2012
Figure 9: Combined Operating Ratio for Total UK Household Insurance (%), 2008–2012
Figure 10: Loss and Expenses Ratios for UK Household Insurance Business (%), 2008–2012
Figure 11: Market Shares of the 10 Leading UK Household Insurers (%) in 2012
Figure 12: UK Household Insurance – Five Forces Analysis
Figure 13: The UK's Insurance Regulatory Framework
Figure 14: UK Household Insurance – Circumstances of Purchase
Figure 15: UK Household Insurance – How Important is a Policy?
Figure 16: UK Household Insurance – Methods of Purchase
Figure 17: Real GDP Growth (%), 2008–2017
Figure 18: Growth in Private Housing Construction, 2004-2012
Figure 19: Growth in Mortgage Lending and House Prices, 2004-2012
Figure 20: Headline and Housing-related Inflation (%), 2001-2012
Figure 21: UK Population Growth and Median Age, 1995-2012
Figure 22: UK Standards of Living (GBP), 1997-2011
Figure 23: Number of Households in the UK (Thousands), 2001-2012