United Kingdom Home Insurance Market Report 2021: COVID-19 a New Significant Market Driver for the £7 Billion Industry
Dublin, Jan. 06, 2021 (GLOBE NEWSWIRE) -- The "UK Home Insurance Market Report 2021" report has been added to ResearchAndMarkets.com's offering.
This report looks at the domestic home/property insurance market, where home insurance is defined as insurance which covers individuals against the cost of repairing or rebuilding their home or replacing its contents. This report considers the size of the market, recent trends, the major players, forecast for the future and sets out the environmental framework in which insurance is sold today.
2019/20 have been turbulent years for home insurance in terms of claims, significant mergers and divestments and changed underwriting capacity. The publisher estimates that home insurance gross written premiums (GWP) will reach around 7 billion in 2020, a rise of 2% compared with 2019.
Predicting future premiums growth is very difficult at the moment given the uncertainties about when the effects of the COVID-19 pandemic will come to an end, and the pandemics final economic impact. Overall, the publisher expects to see no growth in GWP in 2021, however, growth will return after 2021.
Key factors influencing the market today are:
COVID-19 - This has had a range of impacts on the home insurance market. Key amongst these are more home working, which has reduced burglary and water damage claims but increased fire claims. It has also increased pressure on the finances of some families making it harder for them to afford home insurance. This has been mitigated, however, by FCA temporary measures to get insurers to offer flexibility on payments including payment deferrals. COVID-19 has also driven the adoption of IT systems by insurers, covering their internal operations and their direct to consumer distribution operations. This has accelerated the growing focus of the industry on using InsurTech to improve customer engagement and offer more competitive and tailored prices.
The continued rise in household numbers and the recent growth in rented accommodation
The impact of adverse weather events and climate change on claims (e.g. claims for flooding and escape of water), including major storms at the end of 2019 and start of 2020
The desire for home improvements among homeowners and modern construction techniques which are encouraging claims for escape of water and fire
The growing willingness of households to switch insurers to get lower premiums
The FCA Market pricing study, which is set to outlaw price walking, introduce enhanced product governance rules and eventually stop auto-renewal being used as a barrier to switching
Growing consolidation among insurers, which has seen Allianz (including LV= and Legal & General) emerge as the clear market leader.
Key Topics Covered:
EXECUTIVE SUMMARY
Over 600 insurers with the direct sales route the most important
The number of and type of households are prime market drivers
As are weather, crime and building techniques
COVID-19 a new significant market driver
FCA Market Pricing Study
Allianz the new market leader
A market valued at over 7 billion
Little growth predicted in the future
INTRODUCTION
Abbreviations
MARKET STRUCTURE
Direct route or via price comparison websites
Over 600 insurers
Two main channels to market
MARKET DEVELOPMENTS AND DRIVERS
Almost 30 million homes to insure
Eight-in-ten householders own home insurance
Ownership more likely if the consumer is older and a homeowner
Long-term change in housing tenure
Weather and the environment major issues
New building and home improvements increase risks
COVID-19
Home insurance merges into HomeTech
The rise of Insurer Hosted pricing
Flexible and On-demand home insurance
Financial Conduct Authority's Market Pricing Study
Insurance Premium Tax hits premium costs
THE KEY PLAYERS
Allianz is now the clear market leader
Admiral Group
Allianz Insurance/LV/Legal and General
Ageas
Axa Insurance UK Ltd
Aviva
BGL Group
Co-op Group
Covea Insurance plc
Direct Line Group
esure Group
Hastings Group
Lloyds Banking Group
Markerstudy Group
RSA
Zurich
MARKET SIZE AND TRENDS
A turbulent period
Home insurance market worth over 7 billion in GWP
But consumers spend less than this in a given year
THE FUTURE
InsurTech will continue to bring innovation to the industry
The potential for Open Finance
COVID-19 will have long-term impacts.
As will the FCA Market Review on pricing
GWP predicted to rise by almost 5%
ASSOCIATIONS
Companies Mentioned
Admiral Group
Ageas
Allianz Insurance/LV/Legal and General
Aviva
Axa Insurance UK Ltd
BGL Group
Co-op Group
Covea Insurance plc
Direct Line Group
esure Group
Hastings Group
Lloyds Banking Group
Markerstudy Group
RSA
Zurich
For more information about this report visit https://www.researchandmarkets.com/r/y54uit
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