Commercial Motor Insurance in the UK, Key Trends and Opportunities to 2018

Published: Apr, 2014 | Pages: 70 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
The report provides market analysis, information and insights into the UK commercial motor insurance insurance business, and offers:
A snapshot of the market's size and market segmentation
Comprehensive analysis of claims, drivers and market outlook
Analysis of distribution channels
Deals, news and regulatory developments 

Summary
The UK commercial motor insurance category has recorded growth since 2008, despite the synchronous recessionary backdrop. Gross written premiums rose at an annual rate of 7.2% in 2012, to a total of GBP3.4 billion and a five-year high. During the review period (2008-2012), premiums posted a compound annual growth rate (CAGR) of 5.50%. 
The recession resulted in faltering business confidence, lenders reducing the availability of credit, and a slump in capital spending ? including investment in commercial vehicles. Faced with a reduction in the underlying demand for commercial motor insurance, rate rises in the category were largely due to insurers hiking rates to protect profits. 
The total combined operating ratio for insurers operating in the category remained above 100% during the review period and stood at a five-year low of 106% in 2012, indicating long-standing profitability struggles. Premium increases enacted during the review period have not been able to offset rising claims payouts, an increase in operating expenses, and record-low interest rates limiting returns on investments. The category is not expected to return to profit until 2015. 
Motor insurance claims rose sharply during the review period, reflecting a higher incidence of fraudulent claims related to staged accidents and the resulting payouts for personal injury and whiplash claims. The number of motor-related personal injury compensation cases registered with the government's Compensation Recovery Unit surged in the five years to 2012, in contrast to a 15% fall in road traffic accidents during the period. 
The motor insurance industry has collectively prioritized a significant reduction in fraud, introducing measures which include the development of software and databases to improve core risk underwriting, as well as systems to detect false or inflated claims. In addition, the growing use of telematics in commercial vehicle policies and the implementation of the Legal Aid, Sentencing and Punishing of Offenders Act (LASPO) in April 2013 will also have a mitigating effect on commercial motor claims. 
The strengthening UK economy has already begun to spur an increase in commercial vehicle registrations, and the Department of Transport forecasts that goods vehicles will be the fastest-growing category of road traffic to 2020. The revival in demand will support a CAGR of 6.23% for gross written premiums over the forecast period (2014?2018), up to a peak value of GBP4.52 billion in 2018. Insurers' overconfidence in the cost-saving effects of the LASPO bill will limit growth in 2014, before rates are adjusted upwards from 2015.  
Scope
 This report provides market analysis, information and insights into the UK commercial motor insurance business
It provides a global snapshot of market size 
It analyses drivers and the outlook for the market 
It provides information on distribution channels
It covers deals, news and regulatory developments 
Reason To Buy
 Gain an understanding of the UK commercial motor insurance market size
Learn about the performance of market drivers and distribution channels
Understand the competitive landscape in terms of performance, profitability and product innovation
Find out more on key deals and recent developments in the market 
Key Highlights
 Performance defied difficult economic conditions
The recession constrained investment in commercial vehicles
Insurers in the category have struggled to make a profit
Claims costs have risen sharply
Measures to combat fraud are expected to alleviate the claims burden
Favorable factors will drive strong growth from 2015

 1 Executive Summary
2 Introduction 
2.1 What is this Report About? 
2.2 Definitions 
2.3 Methodology 
3 Market Alysis 
3.1 Market Size 
3.1.1 Fleets
3.1.2 Commercial vehicles (non-fleet) 
3.1.3 Other commercial motor 
3.1.4 Penetration and density 
3.2 Claims 
3.2.1 Claims review 
3.2.2 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 - The Best Performers of 2012 
4.3 Product Innovation 
4.4 Commercial Motor Insurance - SWOT Alysis 
5 Porter's Five Forces Alysis 
5.1 Bargaining Power of Suppliers: Low 
5.2 Bargaining Power of Buyers: Medium 
5.3 Barriers to Entry: Medium 
5.4 Intensity of Rivalry: Medium to High 
5.5 Threat of Substitution: Low
6 Deals
6.1 Experian Extends Deal to Maintain Motor Insurance Database 
6.2 Direct Line Group Completes Sale of Telematics Business 
6.3 Axa Signs Broker Deal 
6.4 Broker Deal for Trades Commercial Motor Insurance 
6.5 Ageas Extends Vauxhall Partnership 
6.6 RSA Extends Motability Deal 
7 News 
7.1 Commercial Insurance Ambitions for Allianz
7.2 Direct Line Group Aims to Expand Van Insurance 
7.3 Ageas Partners With Keychoice 
7.4 Liverpool Victoria Expands Commercial Motor Underwriting Team 
7.5 Brokers Concerned Over Aviva's Fleet Book 
8 Regulation and Compliance 
8.1 Recent Changes 
8.1.1 EU Gender Directive 
8.1.2 Legal Aid, Sentencing and Punishing of Offenders Act 2012 (LASPO) 
8.2 Upcoming Regulations 
8.2.1 My Licence driver database 
8.2.2 Solvency II 
9 Macroeconomic Backdrop 
9.1 Real GDP Growth 
9.2 Business Investment 
9.3 Commercial Vehicle Registrations 
9.4 Inflation 
9.5 Interest Rates
10 Company Profiles 
10.1 Ageas (UK) Ltd - Company Overview 
10.1.1 Ageas (UK) Ltd - key facts 
10.1.2 Ageas (UK) Ltd - main products 
10.1.3 Ageas (UK) Ltd - main competitors 
10.1.4 Ageas (UK) Ltd - key employees 
10.2 Allianz Insurance Plc - Company Overview 
10.2.1 Allianz Insurance Plc - key facts
10.2.2 Allianz Insurance Plc - main products 
10.2.3 Allianz Insurance Plc - main competitors 
10.2.4 Allianz Insurance Plc - key employees
10.3 Aviva Plc - Company Overview 
10.3.1 Aviva Plc - key facts 
10.3.2 Aviva Plc - main products 
10.3.3 Aviva Plc - main competitors 
10.3.4 Aviva Plc - key employees 
10.4 Axa UK Plc - Company Overview 
10.4.1 Axa UK Plc - key facts 
10.4.2 Axa UK Plc - main products
10.4.3 Axa UK Plc - main competitors 
10.4.4 Axa UK Plc - key employees
10.5 Direct Line Insurance Group Plc - Company Overview 
10.5.1 Direct Line Insurance Group Plc - key facts 
10.5.2 Direct Line Insurance Group Plc - main products 
10.5.3 Direct Line Insurance Group Plc - main competitors 
10.5.4 Direct Line Insurance Group Plc - key employees
10.6 Liverpool Victoria Friendly Society Ltd - Company Overview 
10.6.1 Liverpool Victoria Friendly Society Ltd - key facts
10.6.2 Liverpool Victoria Friendly Society Ltd - main products
10.6.3 Liverpool Victoria Friendly Society Ltd - main competitors 
10.6.4 Liverpool Victoria Friendly Society Ltd - key employees
10.7 tiol Farmers Union Mutual Insurance Society - Company Overview 
10.7.1 tiol Farmers Union Mutual Insurance Society - key facts
10.7.2 tiol Farmers Union Mutual Insurance Society - main products 
10.7.3 tiol Farmers Union Mutual Insurance Society - main competitors 
10.7.4 tiol Farmers Union Mutual Insurance Society - key employees 
10.8 QBE Insurance (Europe) Ltd - Company Overview 
10.8.1 QBE Insurance (Europe) Ltd - key facts 
10.8.2 QBE Insurance (Europe) Ltd - main products 
10.8.3 QBE Insurance (Europe) Ltd - main competitors 
10.8.4 QBE Insurance (Europe) Ltd - key employees
10.9 Royal & Sun Alliance Insurance Plc - Company Overview
10.9.1 Royal & Sun Alliance Insurance Plc - key facts 
10.9.2 Royal & Sun Alliance Insurance Plc - main products 
10.9.3 Royal & Sun Alliance Insurance Plc - main competitors 
10.9.4 Royal & Sun Alliance Insurance Plc - key employees 
10.10 Zurich Insurance Plc - Company Overview 
10.10.1 Zurich Insurance Plc - key facts 
10.10.2 Zurich Insurance Plc - main products 
10.10.3 Zurich Insurance Plc - main competitors
10.10.4 Zurich Insurance Plc - key employees 
11 Statistics 
11.1 Review Period: 2008-2012 
11.2 Forecast Period: 2013-2018 
12 Appendix 
12.1 Methodology 
12.2 Contact Timetric 
12.3 About Timetric
12.4 Timetric's Services 
12.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions 
Table 2: UK Commercial Motor Insurance - Market Summary (GBP Thousand), 2008-2012 
Table 3: UK Commercial Motor Insurance - Market SWOT Alysis 
Table 4: Recent and Upcoming UK Regulatory Changes 
Table 5: Ageas (UK) Ltd, Key Facts 
Table 6: Ageas (UK) Ltd, Main Products 
Table 7: Ageas (UK) Ltd, Key Employees
Table 8: Allianz Insurance Plc, Key Facts 
Table 9: Allianz Insurance Plc, Main Products 
Table 10: Allianz Insurance Plc, Key Employees 
Table 11: Aviva Plc, Key Facts 
Table 12: Aviva Plc, Main Products 
Table 13: Aviva Plc, Key Employees 
Table 14: Axa UK Plc, Key Facts 
Table 15: Axa UK Plc, Main Products
Table 16: Axa UK Plc, Key Employees 
Table 17: Direct Line Insurance Group Plc - Key Facts 
Table 18: Direct Line Insurance Group Plc - Main Products 
Table 19: Direct Line Insurance Group Plc - Key Employees 
Table 20: Liverpool Victoria Friendly Society Ltd, Key Facts 
Table 21: Liverpool Victoria Friendly Society Ltd, Main Products 
Table 22: Liverpool Victoria Friendly Society Ltd, Key Employees 
Table 23: tiol Farmers Union Mutual Insurance Society, Key Facts 
Table 24: tiol Farmers Union Mutual Insurance Society, Main Products
Table 25: tiol Farmers Union Mutual Insurance Society, Key Employees 
Table 26: QBE Insurance (Europe) Ltd, Key Facts 
Table 27: QBE Insurance (Europe) Ltd, Main Products 
Table 28: QBE Insurance (Europe) Ltd, Key Employees 
Table 29: Royal & Sun Alliance Insurance Plc, Key Facts 
Table 30: Royal & Sun Alliance Insurance Plc, Main Products 
Table 31: Royal & Sun Alliance Insurance Plc, Key Employees 
Table 32: Zurich Insurance Plc, Key Facts 
Table 33: Zurich Insurance Plc, Main Products 
Table 34: Zurich Insurance Plc, Key Employees 
Table 35: Commercial Motor Insurance (GBP Thousand), 2008-2012 
Table 36: Commercial Motor Insurance (GBP Thousand), 2013-2018