UK Motorcycle Insurance 2007

Published by: Datamonitor

Published: Feb. 27, 2008 - 40 Pages

Table of Contents

Overview

Catalyst

Summary

Table of Contents

Table of figures

Table of tables

Market Context

Introduction

UK motorcycle insurance GWP grew slightly in 2006 but contracted in 2007 due to falling premium rates

Slow growth in bike numbers and lower premium rates resulted in only a slight increase in motorcycle GWP in 2006

Competitive pressure on premium rates resulted in an estimated market contraction of 1.0% in 2007

Premium rates fell again in 2007, while vehicle numbers continued to slowly increase

Premium rates declined for motorcycle risks in both 2006 and 2007

The motorcycle parc has continued to expand, bolstering the size of the market

The motorcycle parc has become older, though new registrations have not fallen much since 2004

Approximately the same number of new bikes were registered in 2006 as in 2005

Almost half of all motorcycles on Britain's roads were first registered more than five years ago

The motorcycle market remains bifurcated, with the largest and smallest models the most popular

The Suzuki GSXR 1000 became the most sought after motorcycle in 2007

Green bikes may rise in popularity in the future

Casualty and theft rates influence the claims bill for motorcycle insurance

Claims involving personal injury continued to drive claims inflation due to high medical and legal costs

Casualty rates are down, which should result in lower claims frequency for insurers

The pass rate for motorcycle tests have fallen slightly over the last decade

Theft rates also influence the motorcycle claims bill

Competitive Dynamics

Introduction

Few of the top motorcycle insurers managed to increase market share in 2006

Only two top 10 insurers, Equity Red Star and QBE, increased their market share in 2006

The majority of the top 10 motorcycle insurers lost premium income and market share in 2006

Some insurers began recording motorcycle premium income for the first time in 2006

Distribution is dominated by a few specialist brokers

Specialist brokers Carole Nash, Bennetts and Devitt dominate the distribution of motorcycle insurance

Carole Nash, now part of Groupama, is the largest motorcycle insurance broker in the UK

Bennetts is the second largest broker in the UK distributing over 200,000 motorcycle policies a year

Devitt, which is owned by RBSI, focuses on distributing insurance through motorcycle dealers

Motorcycle dealers and manufacturers have long been a key route to market for motorcycle insurance

Brokers advertising via the press dominated motorcycle insurance advertising in 2006

The amount spent on motorcycle advertisement increased in 2006 and brokers dominated the top 10

Press advertising in trade publications dominated the spend of the top advertisers

Future Decoded

Introduction

Motorcycle insurance GWP is forecast to increase in the near term before contracting again

A number of factors influence future GWP growth in the motorcycle market

Motorcycle GWP is expected to grow in most of the forecast period as competitive pressure lessens

APPENDIX

Supplementary data

Definitions

Premium income measures

Earned premiums

Gross Premium

Net Premium

Written premiums

Other definitions

Channel

Direct insurer/writer

Brokers

Bancassurers

Brandassurers

Platform

2005-06 definitions for line of business

Motor

Total private motor

Private motor comprehensive

Private motor non-comprehensive

Motorcycle

Pre-2005 definitions for lines of business

Motor

Methodology

Primary and secondary research

Market size

Changes in market size information

Market size methodology

Lloyd's players and underwriting result figures

Competitor data

CIS

GWP versus GEP reporting

Home-Foreign, overseas and facultative reinsurance business

Advertising statistics

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: UK motorcycle insurance GWP, 2002-07e (£m)

Table 2: Motorcycle parc in Great Britain by body type, 2002-06 (000s)

Table 3: Motorcycles registered for the first time in Great Britain by body type, 2002-06 (000s)

Table 4: Motorcycle parc by age of first registration by body type, 2006 (000)

Table 5: Motorcycle parc by engine size and body type, 2002-06 (000s)

Table 6: Top 10 new motorcycle registrations by brand, year to date, November 2007

Table 7: Road traffic casualties in Great Britain, 1996-2006

Table 8: Number of motorcycle tests and pass rate in Great Britain, 1997/98-2006/07

Table 9: Theft of and from motor vehicles in the UK, 1996-2006/7

Table 10: Top 10 motorcycle insurers by market share, 2002-06

Table 11: UK motorcycle insurance competitors by premium income, 2002-06 (£000)

Table 12: Policy numbers and market share of top three UK motorcycle insurance brokers, 2007

Table 13: Top 10 motorcycle insurance advertisers, 2005-06 (£)

Table 14: Top 10 motorcycle insurance advertisers by media, 2006 (£)

Table 15: Key variables affecting motorcycle insurance GWP, 2007e-12f

Table 16: UK motorcycle insurance GWP forecast, 2002-12f (£m)

Table 17: Licensed motorcycles in Great Britain by taxation class as a proportion of total vehicle stock, 2002-06 (000s)

Table 18: New motorcycle registrations in Great Britain by taxation class, 2002-06 (000s)

List of Figures

Figure 1: Motorcycle GWP declined in 2007 after a slight increase in 2006

Figure 2: Bike numbers are growing, but at a slower rate than in previous years

Figure 3: The number of new bike registrations have remained almost flat since 2004

Figure 4: Bikes over 500cc, touring and superbikes, have dominated the market over the last five years

Figure 5: Motorcycle casualties as a proportion of total road casualties have fallen since 2003

Figure 6: Motorcycle test pass rates have fallen between 1997 and 2006, but increased in the last year

Figure 7: Theft of and from motor vehicles continued to decline in 2006/7

Figure 8: The market leader, Equity Red Star, increased its market share in 2006

Figure 9: The RBSI broker Devitt spent the largest amount marketing motorcycle insurance in 2006

Figure 10: Advertising in the press was the favored medium for motorcycle insurance providers in 2006

Figure 11: UK motorcycle premium income is forecast to increase slowly through most of the forecast period

Abstract

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