UK Employers' Liability Insurance 2009
Datamonitor
October 2, 2009 35 Pages - SKU: DFMN2470036
|
|
Countries covered: United Kingdom
Introduction
The report is an invaluable guide to the UK employers' liability insurance market, providing insight into competitor strategies, profitability and performance as well as overall market growth and trends. It examines trends in distribution and identifies the key drivers behind claims inflation. The report also provides forecasts for the size and profitability of the market up to 2013.
Scope- A discussion of the competitive issues and prevailing trends within the employers' liability market
- Analysis of the factors driving the market's recent performance
- Forecasts of GWP growth up to and including 2013, based on Datamonitor's in-house expertise and interviews with senior industry executives
Highlights
Many insurers that Datamonitor contacted noted that the market has become differentiated with certain sectors suffering from competitive pricing more than others. Most insurers reported flat or moderately increasing rates for renewals while new business quotes continued to attract intense competition and lower premium rates
The primary reason for the lack in growth in the claims bill between 2004 and 2008 was the reduction in the number of employers' liability claims. This has been countered however by relatively high claims inflation and the high cost of settling each claim.
A majority of SMEs that would buy online were inclined to purchase products such as public or employers' liability insurance. This reflects not only the widespread and common use of these products by SMEs but also the relatively commoditized nature of these insurance products that often can be included in packages that target smaller SMEs.
Reasons to Purchase- Obtain a comprehensive understanding of the key trends in the employers' liability market insurance in the UK.
- Benchmark your company against your competitors based on current and past performances in the market.
- Develop your future business plans from an informed viewpoint with Datamonitor's GWP forecast for the employers' liability insurance market.
|
- Overview
- Catalyst
- Summary
- Executive Summary
- The EL sector was challenging in 2008
- Lower premium rates due to competition remains the key driver behind the market's decline
- Despite increases in net written premiums, the market was unprofitable
- Gross claims costs increased in 2008 by 9.6%
- Brokers dominate distribution
- Independent insurance intermediaries of all types retained their leading market share in 2008
- Commercial liability insurance is considered to be least at risk from the direct channel
- SMEs are relatively open to internet arrangement of their employers' liability cover
- Zurich, Aviva, RSA, AXA and QBE are the top five players
- Zurich remained by far the largest insurer in the market
- Aviva, RSA, AXA and QBE are firmly entrenched in the top five
- The EL market is set to harden
- Premium income is forecast to reach a high of £2.4 billion in 2013
- Table of Contents
- Table of figures
- Table of tables
- Market Context
- Introduction
- The EL sector was challenging in 2008
- The market shrank in 2008 as rates fell
- The Lloyd's market has written a declining amount of employers' liability business in recent years
- Premiums rates fell
- Lower premium rates due to competition remains the key driver behind the market's decline
- Policy count was relatively unchanged in 2008 as the recession had not yet affected the market
- The market made an underwriting loss
- Despite increases in net written premiums, the market was unprofitable
- Commissions and expenses costs are estimated to have continued their decline in 2008
- Employers' liability claims costs increased in 2008
- Gross claims costs increased in 2008 by 9.6%
- Employers' liability claims volumes have declined significantly in recent years
- The British Coal schemes' costs have advanced only slightly
- Workplace injuries and ill health continued to decline in 2007/08
- Incidents of ill health and workplace injuries reported under RIDDOR contracted in 2007/08
- Workplace injuries not attributable to violence declined considerably in 2007/08
- Workplace fatalities reported under RIDDOR declined from their peak in 2006/07
- The estimated total number of workplace accidents is also believed to have declined
- Overall ill-health in the UK economy has declined, though cases of lung-related diseases have increased
- Regulation is having an impact
- A compensation fund along the lines of the Motor Insurance Bureau has been proposed for the market
- Zurich has pursued a court case that benefits insurers still active in the market
- The updated Health and Safety Act coming into effect could mean higher costs for employers' liability insurers
- Employers' liability claims will not be included under the fast track scheme in government reforms
- Proposed pleural plaques legislation can cause uncertainty for the market
- Fraud is a serious problem for insurers
- Fraud is a serious issue for the employers' liability market, particularly in light of the recession
- Insurers have invested in anti-fraud programs that also benefit the employers' liability account
- Customer Focus
- Introduction
- Brokers dominate distribution
- Independent insurance intermediaries of all types retained their leading market share in 2008
- Direct players account for a small but important portion of the commercial general insurance market
- Corporate partnerships have maintained only a small presence in the commercial insurance market
- Banks and building societies distribute negligible amounts of commercial general insurance
- Commercial liability insurance is considered to be least at risk from the direct channel
- An internet proposition could gain ground with SMEs
- Brokers dominate among all sizes of SMEs, though they have greater market share among larger SMEs
- Face-to-face arrangement is popular in the market but is more prevalent among larger SMEs
- SMEs are relatively open to internet arrangement of their employers' liability cover
- High levels of retention go along with high levels of satisfaction
- SMEs are generally happy with their insurance provider
- SMEs tend to prefer longstanding relationships with their providers, making an initial pitch critical
- A large proportion of SMEs are unlikely to switch to a new provider
- More SMEs considered a change of provider in 2009 than in 2008
- A variety of companies, from different industries, believe they will change their provider over the next year
- SMEs that use the internet to arrange their insurance are the most likely to search out a new provider
- Competitive Dynamics
- Introduction
- Zurich, Aviva, RSA, AXA and QBE are the top five players
- Zurich remained by far the largest insurer in the market
- Aviva, RSA, AXA and QBE are firmly entrenched in the top five
- Travelers bucked the trend
- Allianz was the 6th largest EL insurer in 2008
- Travelers increased its GWP
- Allchurches is the 10th largest player
- Lloyd's syndicates underwrote around £100m of EL business
- Amlin is a significant player in the Lloyd's employers' liability market
- Canopius has developed a large book of UK liability risks through its exposure to Arista
- Catlin, which operates the largest syndicate, decreased its UK exposure despite increasing its liability book
- The average gross loss ratio was 73%
- Gross loss ratios for AIG and Allianz improved substantially in 2008
- AXA and ACE experienced only marginal change in their gross claims ratios, which still beat the market average
- Gross loss ratios increased for most of the top 10
- Future Decoded
- Introduction
- The EL market is set to harden
- The recession will weigh heavily on GWP growth, though it is generally accepted that rates must rise
- Premium income is forecast to reach a high of £2.4 billion in 2013
- The combined ratio is expected to remain well above 100%
- APPENDIX
- Definitions
- Premium income measures
- Earned premiums
- Gross premium
- Net premium
- Written premiums
- Distribution
- Direct
- Other company agents
- Utilities/retailers/affinity groups
- Company staff
- Banks/building societies
- Definitions of general terms
- Channel
- Platform
- Employers liability (including the employers liability part of mixed liability packages but excluding mixed commercial packages)
- Methodology
- Commercial Insurance Broker Survey - March 2009
- Datamonitor's SME Insurance Survey Q2 2009
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: UK employers' liability insurance GWP (ABI members), 2000-08 (£m)
- Table 2: Lloyd's market UK employers' liability insurance GWP, 2005-08p
- Table 3: UK company insolvencies, 2004-2009 Q1p
- Table 4: UK employers' liability underwriting result, 2004-08 (£m)
- Table 5: Employers' liability gross claims costs, 2004-08 (£m)
- Table 6: Number of employers' liability personal injury claims split by accident and disease, 2003/04-2008/09
- Table 7: Number of claims made to the DTI and total compensation paid for respiratory disease and VWF under the British Coal scheme as of April 5, 2009
- Table 8: Workplace injuries reportable under RIDDOR, 2003/4-2007/8p
- Table 9: Workplace injuries reportable under RIDDOR, excluding acts of violence, 2003/04-2007/08p
- Table 10: Workplace fatalities reported under RIDDOR, 2003/04-2007/08p
- Table 11: Total estimated workplace injuries reportable to the HSE, 2003/04-2007/08p
- Table 12: Number of cases of occupational disease and work related mental ill-health, 2003-07p
- Table 13: Estimated number of work-related and occupational respiratory disease, 2003-07p
- Table 14: Market share of the distribution channels in the commercial general market, 1999-2008 (%)
- Table 15: Q: "How long have you been with your current insurance provider?"
- Table 16: Q: "Do you think you will change your commercial insurance provider in the next 12 months?"
- Table 17: Top 10 UK employers' liability insurers by market share and GWP, 2007-08
- Table 18: Gross claims ratio of the top 10 employers' liability insurers, 2004-08 (%)
- Table 19: Key variables affecting employers' liability insurance GWP, 2008e-13f
- Table 20: Employers' liability premium income forecast (ABI members), 2003-13f (£m)
- Table 21: Forecast of EL combined ratio, 2009-13 (%)
- Table 22: What banding does your company fall into in terms of general insurance premium income turnover?
- Table 23: Q: "What business sector are you involved in?"
- Table 24: Q: "How large is your company in terms of number of employees?"
- Table 25: Q: "How large is your company in terms of turnover?"
- List of Figures
- Figure 1: SMEs show the greatest willingness to purchase public and employers' liability insurance online
- Figure 2: Lloyd's market players have continued to write a declining amount of UK employers' liability business
- Figure 3: UK company liquidations increased sharply in 2008 due to the recession
- Figure 4: The employers' liability market made another underwriting loss in 2008
- Figure 5: Gross claims costs resumed their growth in 2008, after a sharp decline in 2007
- Figure 6: The number of employers' liability claims relating to disease has fallen significantly in recent years
- Figure 7: Workplace deaths have declined from their most recent peak in 2006/07
- Figure 8: Cases of lung-related occupational disease increased in 2007
- Figure 9: National brokers witnessed a significant increase in their share of the UK commercial insurance market in 2008
- Figure 10: Commercial motor is considered to be at most risk from the direct channel
- Figure 11: Brokers have the highest penetration among medium-sized firms
- Figure 12: Micro SMEs are most comfortable with arranging their cover over the telephone
- Figure 13: SMEs show the greatest willingness to purchase public and employers' liability insurance online
- Figure 14: Satisfaction levels in the market remain high
- Figure 15: Very few SMEs have changed their provider in the last two years
- Figure 16: Companies in the education sector are the most likely to seek out a new quote in the next 12 months
- Figure 17: Clients which arrange their insurance through the internet are the most likely to search for another provider
- Figure 18: Zurich remains the clear market leader
- Figure 19: Loss ratios for the top 10 insurers generally deteriorated
- Figure 20: The market is predicted to grow between 2009 and 2013
- Figure 21: The combined ratio is expected to remain at well over 100% across the forecast period
More United Kingdom Property & Casualty Reports
Channel Metrics: Consumer Distribution Trends in UK Personal Accident Insurance (briefing) by
Finaccord Ltd.
Channel Metrics: Consumer Distribution Trends in UK Personal Accident Insurance is the most detailed and up-to-date guide to distribution trends in personal accident insurance in ...
Channel Metrics: Consumer Distribution Trends in UK Household Insurance (briefing) by
Finaccord Ltd.
Channel Metrics: Consumer Distribution Trends in UK Household Insurance is the most detailed and up-to-date guide to distribution trends in household insurance in the UK ...
Channel Metrics: Consumer Distribution Trends in UK Home Emergency Insurance (briefing) by
Finaccord Ltd.
Channel Metrics: Consumer Distribution Trends in UK Home Emergency Insurance is the most detailed and up-to-date guide to distribution trends in home emergency insurance in ...
UK Personal Injury Litigation 2012 by
Datamonitor
A comprehensive analysis of the personal injury market. Introduction UK Personal Injury Litigation 2012 provides a comprehensive analysis of the personal injury sector. It examines claims trends ...
General Insurance in the UK - Industry Market Research Report by
IBISWorld
General Insurance in the UK Businesses in this industry underwrite insurance policies relating to property, casualty, liability and other general risks. In underwriting insurance policies, general ...
See all reports like this >>
More United Kingdom Reports
A Comprehensive Study Of The UK Video Conferencing Equipment Market In 2010, Rating & Valuing Each Of The 30 Companies That Operate In Today's Market by
Plimsoll Publishing Ltd.
The Plimsoll Analysis provides you with the most up to date and comprehensive analysis of the top 9 companies operating the market. It is ...
A Comprehensive Study Of The UK Tableware Market In 2010, Rating & Valuing Each Of The 166 Companies That Operate In Today's Market by
Plimsoll Publishing Ltd.
The Plimsoll Analysis provides you with the most up to date and comprehensive analysis of the top 9 companies operating the market. It is ...
A Comprehensive Study Of The UK Surveyors & Valuers Market In 2010, Rating & Valuing Each Of The 943 Companies That Operate In Today's Market by
Plimsoll Publishing Ltd.
The Plimsoll Analysis provides you with the most up to date and comprehensive analysis of the top 9 companies operating the market. It is ...
A Comprehensive Study Of The UK Subsea Engineering Market In 2010, Rating & Valuing Each Of The 142 Companies That Operate In Today's Market by
Plimsoll Publishing Ltd.
The Plimsoll Analysis provides you with the most up to date and comprehensive analysis of the top 9 companies operating the market. It is ...
A Comprehensive Study Of The UK Structural Engineering Consultancy Market In 2010, Rating & Valuing Each Of The 300 Companies That Operate In Today's Market by
Plimsoll Publishing Ltd.
The Plimsoll Analysis provides you with the most up to date and comprehensive analysis of the top 9 companies operating the market. It is ...
See all reports like this >>
Share this report
Other tasks Related Markets Property & Casualty Reports Free Alert Me service Receive bi-weekly email alerts on new market research Sign Up Today!
|
