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UK Motor Insurance Market Trends Report 2021

·4-min read

Dublin, Nov. 09, 2021 (GLOBE NEWSWIRE) -- The "UK Motor Insurance Market Trends Report 2021" report has been added to's offering.

This report looks at the consumer (or personal lines) motor insurance market, where motor insurance is defined as insurance which covers individuals against the cost of repairing or replacing a vehicle and costs that arise due to injuries caused to other people and damage to their vehicles. Depending on the policy purchased, insurance may also cover the contents included within the vehicle.

In 2019, the publisher estimates the motor insurance market generated gross written premiums (GWP) of just over £14.2 billion, a rise of around 2% over 2018. Given the impact of COVID-19 on the market, the publisher expects GWP to decline by 8% in 2020. Key factors behind this decline are premium rebates given to customers by some leading insurers; premium rate reductions reflecting reduced claims frequency; reduced demand for car insurance in the lockdowns.

Between 2020 and 2025, the publisher predicts that motor insurance GWP will rise by 18% to finish at over £15 billion. Growth will be strongest between 2020 and 2022, after which annual growth rates will slow. Between 2020 and 2022, premiums are expected to rise by over 10% as the UK recovers from the worst impacts of the COVID-19 pandemic. After 2022, premiums will rise on average by around 2% per annum.

COVID-19 has been the most significant influence on the UK economy and society over 2020/21. It has caused a significant reshaping of consumer driving habits and the associated car insurance market.

Its key effects have been:

  • A significant drop in motor insurance claims (fewer accidents and thefts) and an increased demand for PAYG insurance.

  • A reduction in premium costs.

  • Decline in driving tests and decline in car purchases - reducing insurance demand from new drivers and the demand for higher value insurance from existing driving upgrading to more expensive cars.

  • Increase pressure on family finances - causing a decline in car purchases and demand for cheaper insurance.

  • Increase use of IT/online systems to purchase, administer and manage policies and a general acceleration in the use of InsurTech systems by insurers, such as fully digital systems to assess accident damage and repair costs, accident liability and claims diagnosis.

Other significant developments impacting on the market in recent years and into the future include:

  • The FCA Market Study which has ruled out price walking and introduced new governance rules and will eventually aim to stop auto-renewals being used as a barrier to switching.

  • Cut in personal injury costs for insurers. The implementation of new rules/laws (e.g. the Civil Liabilities Act), which will most likely cut the number of lower value personal injury claims as a result of a road traffic accident.

Key Topics Covered:

1. Executive Summary

  • Motor insurance market worth over £14 billion in GWP

  • Three key routes to market

  • Around 31 million cars to insure, with seven-in-ten adults insured

  • COVID-19 re-shapes the market

  • Key non-COVID developments

  • Direct Line and Admiral lead the market

  • GWP to each over £15 billion by 2025

2. Introduction

  • Abbreviations

3. Market Structure

  • Direct route or via brokers

  • Almost 600 insurers

4. Market Developments and Drivers

  • Almost 32 million cars to insure

  • With expensive to insure cars of growing importance

  • Seven-in-ten adults have motor insurance

  • COVID-19

  • COVID-19 decreases claims inflation and results in lower premiums

  • COVID-19 accelerates the use of InsurTech and new technologies

  • The rise of Insurer Hosted pricing

  • Flexible and On-demand motor insurance

  • Telematics insurance, still a niche sector

  • Electric vehicle insurance launched

  • Financial Conduct Authority's Market Pricing Study

  • Insurance Premium Tax hits premium costs

  • The Civil Liabilities Act: Reform of Soft Tissue Injury (Whiplash) Claims Process

  • 2019 review of the Personal Injury Discount Rate (PIDR)

  • The Automated and Electric Vehicles Act (AEVB)

  • Brexit and Europe

5. They Key Players

  • Direct Line and Admiral lead the market

  • Admiral Group

  • Allianz Insurance/LV/Legal and General

  • Ageas

  • Axa Insurance UK Ltd

  • Aviva Insurance Ltd

  • BGL (Holdings) Ltd

  • Co-op Insurance Services

  • Covea Insurance plc

  • Direct Line Group

  • esure Group

  • Hastings Group

  • Markerstudy Group (Markerstudy Holdings Ltd)

  • The National Farmers Union Mutual Insurance Society Limited (NFU Mutual)

  • RSA

  • Sabre Insurance

  • Saga plc

  • Zurich

6. Market Size and Trends

  • Motor insurance market worth over £14 billion in GWP

7. The Future

  • InsurTech will continue to bring innovation to the industry

  • The potential for Open Finance

  • COVID-19 will have long-term impacts

  • FCA Market Review will impact on pricing

  • GWP predicted to rise by 18%

8. Associations

For more information about this report visit

CONTACT: CONTACT: Laura Wood, Senior Press Manager For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

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