UK Commercial Motor Insurance: Market Dynamics & Opportunities 2017
LONDON, Sept. 7, 2017 /PRNewswire/ -- UK Commercial Motor Insurance: Market Dynamics & Opportunities 2017
Summary
Commercial motor insurance market in UK grew slightly in 2016. This was a result of economic growth, which in turn increased business prosperity and therefore the investment in commercial vehicles to support business expansion. Despite growth in commercial motor, the market is heading towards unprofitable territory as it is expected that rates will begin to harden over the next few years, until further government reforms are introduced that might lower claims costs.
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Key findings include in this report -
- Gross written premiums (GWP) for the commercial motor insurance market grew by 4.5% to £4.17bn in 2016.
- The claims environment, alongside personal motor insurance, remains in a state of uncertainty around the impact of the discount rate reduction to -0.75% and whiplash claim reforms.
- There are concerns among industry experts around longer-term market profitability and the availability of reserves to bolster combined operating ratios (CORs), particularly if the predicted negative impacts of leaving the EU come to fruition.
The commercial motor parc continued to increase in 2016, with light goods vehicles (LGVs) and company cars driving the majority of growth. However, with the UK's vote to leave the EU it is expected that motor parc growth will slow, as businesses will have less confidence and money to invest in new commercial vehicles until the economy begins to recover. While reforms will provide instant benefits upon implementation, telematics and driverless technology will help reduce the frequency of claims in the longer term.
Insurers should encourage customers to invest in and utilize telematics and driverless technology. Benefits will include lower claims costs, through which savings can then be passed on to customers while increasing profitability. Commercial motor insurers are facing a challenging environment with Brexit, the Ogden rate change, and whiplash reform. Insurers must continue to monitor the outcomes and design approaches accordingly.
The report "UK Commercial Motor Insurance: Market Dynamics & Opportunities 2017", analyzes the UK commercial motor insurance market, looking at market size as well as changes in premiums, claims, road casualties, the motor parc, regulations, and opportunities. It discusses competitors in the market, how the market is likely to change due to telematics and driverless cars, and provides future forecasts of market size up to 2021.
Companies mentioned in this report: RSA, Aviva, Allianz, NFU Mutual, AXA, Zurich , QBE, LV=, Direct Line, Ageas.
Scope
- Gross written premiums for the commercial motor insurance market grew by 4.5% to £4.17bn in 2016.
- The claims environment, alongside personal motor insurance, remains in a state of uncertainty around the impact of the discount rate reduction to -0.75% and whiplash claim reforms.
- There are concerns among industry experts around longer-term market profitability and the availability of reserves to bolster combined operating ratios, particularly if the predicted negative impacts of leaving the EU come to fruition.
Reasons to buy
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Be prepared for how regulation will impact the commercial motor insurance market over the next few years.
Download the full report: https://www.reportbuyer.com/product/5094617
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