Commercial Property Insurance in the UK - Key Trends and Opportunities to 2017

Published: Jan, 2014 | Pages: 66 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
 The report provides market analysis, information and insights into the UK commercial property insurance business
It provides a snapshot of market's size and segmentation
It offers a comprehensive analysis of claims, drivers and market outlook
It analyzes distribution channels
It details deals, news and regulatory developments 

Summary
Gross written premiums in the commercial property insurance category recorded sustained growth throughout the review period (2008-2012), rising at a compound annual growth rate (CAGR) of 6.79%. Premiums increased at an annual rate of 6.8% in 2012, reaching a total of GBP6.72 billion; the highest level in five years. 
Commercial property insurance claims paid declined by 5.5% in 2012, but this belies the rapid growth recorded since 2008. Payouts rose at a CAGR of 57.29% over the five years to 2012, while claims incurred increased at a CAGR of 28.61% during the same period. The UK has experienced frequent flooding since 2000, including two of the wettest years on record since 2008. 
Despite weakness in the commercial construction market and flagging business sentiment due to poor economic conditions, the rise in premiums was driven by high claims related to severe weather and instances of civil unrest. Tentative economic recovery and improving business conditions drove growth towards the end of the review period. 
A large claims burden, limited investment returns due to the UK's low interest rate environment, and rising expenses have hindered the profitability of insurers in the category. A combined operating ratio of 111.8% was registered in 2012. Although it exceeds the 100% breakeven threshold, it marks an improvement on profitability levels recorded during 2008?2010. 
Following the expiry of the Statement of Principles in June 2013, Flood Re was established by the government and the insurance industry. Unlike its predecessor, Flood Re excludes small businesses from guaranteed flood insurance at affordable prices, and will result in upward pressure on costs and premiums for insurers and their commercial customers.  
Despite downside forces, growth in commercial property gross written premiums will prevail over the forecast period (2013-2017) as the economic recovery gains traction, business confidence improves and commercial construction activity increases. Premiums are expected to rise to GBP8.22 billion in 2017, representative of a CAGR of 4.34% over the five years from 2013. 
Scope
 This report provides market analysis, information and insights into the UK commercial property 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 property 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
 Premium growth was maintained in 2012
Commercial property insurance payouts have surged
High claims led insurers to raise rates
Profitability has been elusive
Insurers will face headwinds following legislative changes
Moderate growth in gross written premiums is expected

 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 Commercial property
3.1.2 Consequential loss
3.1.3 Contractors or engineering risks
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 Property 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 Towergate Sells Commercial Property Division
6.2 Aviva Joins the PowerPlace Panel for Commercial Property
6.3 Covea Extends Deal with Risk Control Firm
6.4 Insurers Move Into Takaful
6.5 QBE Becomes Sole Capacity Provider for Wholesale Broker
7 News 
7.1 BIBA Flags Concerns over Flood Re 
7.2 FM Global med Best Commercial Property Insurer
7.3 FM Global's Risk Innovation
7.4 Increase in Commercial Property Insurance Complaints
7.5 Axa Survey Reveals Gaps in the Market 
8 Regulation and Compliance 
8.1 Upcoming Regulations 
8.1.1 Flood Re
8.1.2 Review of the Riot (Damages) Act
8.1.3 Solvency II 
9 Macroeconomic Backdrop 
9.1 Real GDP Growth 
9.2 Commercial Property Market Dymics 
9.3 Private Sector Lending 
9.4 Interest Rates
9.5 Business Demographics
10 Company Profiles 
10.1 ACE European Group Ltd - Company Overview 
10.1.1 ACE European Group Ltd - key facts 
10.1.2 ACE European Group Ltd - main products 
10.1.3 ACE European Group Ltd - main competitors 
10.1.4 ACE European Group 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 FM Insurance Company Ltd - Company Overview 
10.5.1 FM Insurance Company Ltd - key facts 
10.5.2 FM Insurance Company Ltd - main products 
10.5.3 FM Insurance Company Ltd - main competitors 
10.5.4 FM Insurance Company Ltd - key employees 
10.6 Great Lakes Reinsurance (UK) Plc - Company Overview 
10.6.1 Great Lakes Reinsurance (UK) Plc - key facts 
10.6.2 Great Lakes Reinsurance (UK) Plc - main products 
10.6.3 Great Lakes Reinsurance (UK) Plc - main competitors 
10.6.4 Great Lakes Reinsurance (UK) Plc - key employees 
10.7 QBE Insurance (Europe) Ltd - Company Overview 
10.7.1 QBE Insurance (Europe) Ltd - key facts 
10.7.2 QBE Insurance (Europe) Ltd - main products 
10.7.3 QBE Insurance (Europe) Ltd - main competitors 
10.7.4 QBE Insurance (Europe) Ltd - key employees 
10.8 Royal & Sun Alliance Insurance Plc - Company Overview 
10.8.1 Royal & Sun Alliance Insurance Plc - key facts 
10.8.2 Royal & Sun Alliance Insurance Plc - main products 
10.8.3 Royal & Sun Alliance Insurance Plc - main competitors 
10.8.4 Royal & Sun Alliance Insurance Plc - key employees 
10.9 XL Group Plc - Company Overview 
10.9.1 XL Group Plc - key facts 
10.9.2 XL Group Plc - main products 
10.9.3 XL Group Plc - main competitors 
10.9.4 XL Group 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: 2013-2017
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 Property Insurance - Market Summary (GBP Thousand), 2008-2012
Table 3: UK Commercial Property Insurance - Market SWOT Alysis 
Table 4: Recent and Upcoming Regulatory Changes 
Table 5: ACE European Group Ltd, Key Facts
Table 6: ACE European Group Ltd, Main Products 
Table 7: ACE European Group 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: FM Insurance Company Ltd, Key Facts 
Table 18: FM Insurance Company Ltd, Main Products 
Table 19: FM Insurance Company Ltd, Key Employees 
Table 20: Great Lakes Reinsurance (UK) Plc, Key Facts
Table 21: Great Lakes Reinsurance (UK) Plc, Main Products
Table 22: Great Lakes Reinsurance (UK) Plc, Key Employees
Table 23: QBE Insurance (Europe) Ltd, Key Facts
Table 24: QBE Insurance (Europe) Ltd, Main Products
Table 25: QBE Insurance (Europe) Ltd, Key Employees
Table 26: Royal & Sun Alliance Insurance Plc, Key Facts
Table 27: Royal & Sun Alliance Insurance Plc, Main Products
Table 28: Royal & Sun Alliance Insurance Plc, Key Employees
Table 29: XL Group Plc, Key Facts
Table 30: XL Group Plc, Main Products
Table 31: XL Group 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 Property Insurance (GBP Thousand), 2008-2012
Table 36: Commercial Property Insurance (GBP Thousand), 2013-2017