United Kingdom Household Insurance Market Report 2023: Aviva Leads the Way - Dynamics, Trends and Opportunities

DUBLIN, Nov. 29, 2023 /PRNewswire/ -- The "United Kingdom (UK) Household Insurance Market Dynamics, Trends and Opportunities, 2023" report has been added to ResearchAndMarkets.com's offering.

This report analyzes the UK household insurance market, looking at drivers of uptake across different demographics and dwelling types.

It discusses the claims landscape in 2022 as well as the housing market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, as are newcomers and insurtechs within the space. Future impactors in the market (including climate change, smart home devices, and changing living arrangements) are also covered.

Gross written premiums (GWP) in the household insurance market to grow by 2.9% by the end of 2023, following its 3.3% decline to GBP5.97 billion in 2022. The 2022 decline was primarily caused by a 5.6% decrease in the total number of policies written across all three products.

The overall average premium price fell by 5.3% over the course of 2022, playing a role in the GWP decline. Combined, buildings-only, and contents-only insurance premiums decreased by 5.6%, 8.1%, and 8.4% respectively in 2022.

Scope

• The UK household insurance market is expected to grow by 2.9% in 2023, following a 3.3% decline in 2022.
• The average premium prices for combined, buildings-, and contents-only insurance decreased by 5.6%, 8.1%, and 8.4% respectively in 2022. Furthermore, the number of policies for all products fell, contributing towards the overall decline in GWP.
• Home insurance claims in the UK rose in 2022, with the cost of claims growing by 6.2% and the total number of claims reported increasing by 2.6%. A significant increase in weather-related and subsidence claims was the main factor behind the uptick in overall claims.
• Generation Rent remain an untapped demographic as roughly half have contents-only insurance in place.

Reasons to Buy

• Identify underlying drivers of demand and premium prices for home insurance products.
• Examine the nature of the claims landscape in 2022.
• Compare the performances of market leaders throughout the year.
• Determine how insurtechs are attempting to gain traction in the market.
• Understand the impact of inflation in the home insurance market going forward.

Key Topics Covered:

1. Executive Summary
1.1 Market overview
1.2 Key findings
1.3 Critical success factors

2. Market Dynamics
2.1 The UK household insurance market fell in 2022, but will return to growth by the end of 2023
2.2 Government and regulatory policies in home insurance
2.3 The claims landscape in 2022
2.4 The housing market is returning to normal levels following a dip from the pandemic

3. Competitor Dynamics
3.1 Aviva remains the largest provider of home insurance in 2022
3.2 Insurtechs and recent developments

4. The Market Going Forward
4.1 Growth in the market is expected to be stagnant through 2027f
4.2 Smart home devices and the future of home insurance
4.3 Other providers may enter the market
4.4 Extreme weather events will affect claims

5. Appendix
5.1 Abbreviations and acronyms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading

• About the Publisher
• Contact the Publisher

List of Tables
Table 1: Household insurance GWP, annual growth rate, 2018-22
Table 2: Yearly and quarterly average household insurance premium rate movements, Q1 2018-Q2 2023
Table 3: Percentage of respondents holding any form of home insurance, 2021-22
Table 4: Household gross claims incurred and number of claims notified, by type, 2018-22
Table 5: New home registrations and completions, 2018-22
Table 6: Top 10 UK household insurers by GWP and market share, 2020-22
Table 7: UK household insurance market forecasts, 2022-27

List of Figures
Figure 1: UK household insurance market GWP slumped by 3.3% in 2022
Figure 2: Home insurance premiums have been on the rise since the large dip in Q1 2022
Figure 3: Combined insurance makes up 82.5% of total home insurance GWP in 2022
Figure 4: Roughly 50% of all renters have a home insurance product in place
Figure 5: The number of UK renters increased in 2022
Figure 6: Many have not purchased home insurance as it is too expensive
Figure 7: Uptake of contents-only insurance has fallen, whereas a quarter of renters have the wrong insurance
Figure 8: Overall cost of claims incurred grew by 6.2% in 2022
Figure 9: Number of claims notified increased by 2.6% in 2022
Figure 10: Rebuild costs are still growing, just at a slower pace in 2023
Figure 11: Consumers are reluctant to change their level of cover amid the cost-of-living crisis and high rebuild costs
Figure 12: New home registrations and completions continue growing in 2022, with a large increase in registrations
Figure 13: Mortgage approvals dropped off towards the end of 2022, in line with interest rates increasing
Figure 14: Younger consumers are more likely to be renting due to difficulty getting on the property ladder
Figure 15: Aviva retains its position as the leader in the household insurance market
Figure 16: Premiums in the household insurance market are expected to increase in 2023f
Figure 17: Younger consumers are far more likely to be willing to share smart home data with their insurer
Figure 18: Uptake of smart home devices in the UK, 2022
Figure 19: Big tech firms hold a strong position of trust among consumers if they were to sell home insurance
Figure 20: Forecasting methodology

A selection of companies mentioned in this report includes

• Aviva
• Allianz
• RSA
• Direct Line
• Chubb
• Lloyds Banking Group
• Ageas
• AXA
• NFU Mutual
• LV=
• L&G
• Flood Re
• Zurich
• Barclays
• TSB Bank
• Lemonade
• JPMorgan
• Co-op
• Amazon
• GoCompare
• Sky
• Hiscox

For more information about this report visit https://www.researchandmarkets.com/r/557t6q

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