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UK Commercial Motor Insurance: Market Dynamics and Opportunities 2024

Publisher GlobalData
Published Jan 13, 2025
Length 34 Pages
SKU # GBDT19567261

Description

UK Commercial Motor Insurance: Market Dynamics and Opportunities 2024

Summary

This report analyzes the UK commercial motor insurance market, looking at drivers of uptake. It discusses the claims landscape in 2023, as well as the motor market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within this space. Future impactors in the market-including emerging technology such as artificial intelligence and autonomous vehicles-are also covered.

The UK commercial motor insurance market grew by 11.4% from 2022 to 2023 to reach a value of GBP6.29 billion. We expect the market to increase by a further 7.4% in 2024, reaching a value of GBP6.76 billion. Throughout 2023, one of the primary drivers of growth was elevated claims inflation, which continued to increase due to the rising cost of vehicle repairs, parts shortages, and labor expenses. Meanwhile, Aviva overtook Allianz to become the leading provider in 2023, accounting for 12% of the market.

Scope
  • The total number of commercial vehicles increased by 1.4% in 2023.
  • The total miles driven by all vehicles increased by 2.2% from 2022 to 2023.
  • Aviva reclaimed first place with a 34.5% increase in GWP, jumping from GBP562 million to GBP758.1 million. Aviva now accounts for 12% of the market.
Reasons to Buy
  • Determine how the market leaders have maintained their positions and evolved their product offerings.
  • Understand the ongoing effects of the cost-of-living crisis on the market.
  • Ascertain how newcomers and insurtechs are disrupting and driving innovation.
  • Identify areas of growth and development in the market going forward.
  • Recognize the challenges facing UK businesses and commercial motor insurers.

Table of Contents

34 Pages
Executive Summary
Market overview
Key findings
Critical success factors
Market Dynamics
The UK commercial motor insurance market
Commercial motor insurance GWP increased by 11.4% in 2023 and is set to grow by 7.4% in 2024
Commercial vehicle registrations increased in 2023
Inflation started to fall in 2023 and into 2024
The number of miles driven on UK roads increased in 2023
Fuel costs began to fall in 2023 but remain higher than pre-pandemic
A more favorable Ogden rate has been introduced
Removing the IPT could increase EV sales
Government launches taskforce on motor insurance costs
Claims recorded by the CRU continue to fall while claims settled rose in 2023
The number of casualties fell in 2023
Competitor Dynamics
Overview of the market leaders
Aviva overtook Allianz to secure first place
Allianz fell to second after its market share declined by 1pp
Zurich remained in third place despite GWP growth
AXA rounded out the top five with a 7.1% share of the market
Insurtechs and newcomers
The Market Going Forward
The market is set to reach GBP7.56 billion in 2028
Technology continues to reshape the commercial motor insurance landscape
Asset visibility ranks as the top benefit for telematics solutions
AI can create big wins for insurers
Embedded insurance can transform the commercial motor insurance market
Amazon drone delivery receives UK approval
Electric vehicles in the commercial landscape
EVs are becoming increasingly popular among fleets
There are challenges for insurers in the move to EVs
Autonomous vehicles in the commercial landscape
Self-driving vehicles are set to be on UK roads by 2026
Uber and BYD plan to introduce thousands of self-driving cars to the UK
Appendix
Abbreviations, acronyms, and initialisms
Methodology
GlobalData’s UK Top 25 General Insurance Competitor Analytics
Forecasting methodology
Secondary sources
Further reading
About GlobalData
Contact Us
List of Tables
Table 1: Total number of commercial vehicles by type (000s), 2019–23
Table 2: Volume and annual growth rates of total claims recorded and settled, 2019–20 to 2023–24
Table 3: UK commercial motor insurance top 10 competitor GWP and market shares, 2021–23
List of Figures
Figure 1: The UK commercial motor insurance market is set to have reached GBP6.76 billion by the end of 2024
Figure 2: The total number of commercial vehicles increased by 1.4% from 2022 to 2023
Figure 3: Inflation has fallen significantly from its 2022 peak
Figure 4: The total miles driven for all motor vehicles increased by 2.2% in 2023
Figure 5: Total claims settled by the CRU rose in 2023–24
Figure 6: The number of claims recorded by the CRU declined slightly in 2023 amid a fall in casualties
Figure 7: Aviva became market leader after increasing its share of the market by 2pp
Figure 8: The commercial motor insurance market is set to reach GBP7.56 billion in 2028
Figure 9: Forecasting methodology

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