CHAPTER 1 INTRODUCTION 8
What is this report about? 8
Who is the target reader? 8
How to use this report 8
CHAPTER 2 ZURICH: UK PERSONAL GENERAL INSURANCE COMPETITOR PROFILE 2006 9
Zurich Financial Services is a general and life assurer with an emphasis on North America and Europe 9
Zurich Financial Services is one of the largest insurance groups in the world 9
The UK is the second largest contributor to Zurich's worldwide general insurance business 10
Zurich's personal lines business is smaller than its commercial arm, however, household and motor have grown at a steady rate 11
Zurich's general insurance book is weighted towards commercial business 11
Zurich's household and private motor books have grown at similar rates to the respective markets since 2001, but the company pulled back from competition in 2005 12
Its combined ratio increased in 2005, but Zurich UK saw net earned premiums decrease as part of its commitment to underwriting discipline 18
2006 has been a tough year for Zurich 19
Zurich's UK personal lines strategy will see it respond to increasing market competition as well as maximizing the efficiency of its value chain 19
Zurich is responding to market pressures with plans to move to a more customer focused approach and to leverage some of the pan-European strategies of Zurich European General Insurance 19
Zurich is undertaking a number of initiatives to maximise the effectiveness of its UK value chain 21
Zurich spent £4.1 million on advertising in 2005, the majority of which was spent on motor insurance 23
Zurich's general insurance book is heavily intermediated 26
Zurich distributes personal lines business to over 3,000 brokers and is held in high esteem by its brokers 26
Zurich is taking a cautious approach to the direct channel but will seek to boost its corporate partners' business 26
Zurich has restructured its UK business along distribution capabilities 27
Zurich will be maintaining its intermediary focus while moving towards a more customer centric approach and seeking to maximise efficiency in the UK value chain 28
Zurich will be taking a cautious approach to direct distribution and continuing with its emphasis on intermediated business 28
Zurich intends to take a more customer orientated approach and generate efficiencies along the value chain 28
CHAPTER 3 APPENDIX 29
Supplementary data 29
Methodology 30
Competitor data 30
GWP versus GEP reporting 30
Major changes in FSA Return categories and their impact 31
Market size 31
Changes in market size information 31
2005 definitions for lines of business 32
Accident & health 32
Motor 32
Total private motor 32
Private motor comprehensive 33
Private motor non-comprehensive 33
Motorcycle 34
Property 34
Household and domestic all risks. 34
Financial/Pecuniary loss business 34
Total personal financial loss business 34
Total personal 34
Total commercial 35
Ratio analysis by competitor 35
Premium income measures 36
Earned premiums 36
Gross Premium 36
Net Premium 36
Written premiums 36
Research methodology 36
Datamonitor's Personal Broker Survey 36
Current readings 36
Future readings 37
Do you need more information? 37
Datamonitor Financial Services Consulting 37
SPP writing team 39
List of Tables
Table 1: Zurich FS general insurance GWP & policy fees by geography, 2005 11
Table 2: Split between personal and commercial business for Zurich, 2005 12
Table 3: Zurich's growth rates and share of personal GWP by line of business compared to the market, 2005 15
Table 4: Zurich's personal lines premium income split by line of business, 2001-5 16
Table 5: Key statistics relating to Zurich's personal lines book, 2001-5 17
Table 6: Zurich UK key profit metrics, 2004-5 19
Table 7: Zurich's advertising spend by product, 2005 24
Table 8: Zurich's advertising spend by media, 2005 25
Table 9: Do you enjoy dealing with any particular insurer? 30
List of Figures
Figure 1: Zurich UK general insurance forms part of Zurich European General Insurance 9
Figure 2: Zurich UK, at £2.2 billion GWP, made a significant contribution towards Zurich's worldwide general insurance business 10
Figure 3: Zurich's book was heavily weighted towards commercial business in 2005 12
Figure 4: Zurich's household and private motor books have grown at a similar rate to the overall household and private motor markets between 2001 and 2005 14
Figure 5: Zurich has seen steady growth in its household insurance book between 2001 and 2005 16
Figure 6: Zurich UK's business operating profit fell by 23.8 per cent in 2005 to £277 million 18
Figure 7: Zurich will focus on all three distribution channels in personal lines and move to a more customer centric approach 21
Figure 8: Zurich UK intends to maximize the efficiency of its value chain in personal lines 23
Figure 9: Zurich spent the majority of its advertising budget on motor insurance in 2005 24
Figure 10: Zurich spent over 80 per cent of its advertising budget on direct mail 25
Figure 11: Zurich focuses heavily on the broker channel 27
Figure 12: Brokers particularly enjoy dealing with Zurich and Norwich Union 29
