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UK SME Insurance: Competitor Dynamics 2018

UK SME Insurance: Competitor Dynamics 2018

Summary

This report looks at which insurers lead the way in the SME segment and how they are developing their propositions. It also highlights how competitor positions vary between micro, small, and medium enterprises. It examines which insurers are winning over brokers and which companies SMEs are placing their business with.

AXA and Aviva dominate the UK SME insurance space across all of the 10 non-vehicle-based commercial products listed in our 2018 UK SME Insurance Survey. However, the pair have slipped within the six motor lines, with Admiral and AA in particular establishing a strong presence at the top of these markets. Meanwhile Allianz recorded a strong performance in the liabilities lines but little impact in the vehicle-based lines. Hiscox and Zurich are liability specialists, although they have both seen their shares decline since 2017. Within the motor lines there is a clear trend of popular personal lines insurers also enjoying success in the SME market. This shows that established relationships are essential and easily transferred from personal to commercial lines.

Scope

  • AXA’s domination has declined slightly in terms of individual lines, but it still heads seven products.
  • Third-placed Allianz remains over 5 percentage points behind Aviva, which highlights that the top two are still way ahead of other brands despite their declines. But this is offset by Allianz underwriting the products of Barclays, which is the fourth-largest player.
  • AXA’s position in the overall market is not replicated in brokers’ preference for business placement, where Allianz and Aviva continue to top packaged and non-packaged respectively.
Reasons to buy
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the market.
  • Adapt your distribution strategy to ensure it is efficient and still meets customer purchasing behavior.


  • Executive Summary
    • AXA and Aviva continue to lead the market
    • Key findings
    • Critical success factors
  • The Shape of the SME Market
    • Introduction
    • The big three continue to lead the way for packaged broker insurance
      • Table Figure 1: The top three for SME business placement pulled away from their competitors in 2018
      • Table Market share of packaged SME insurance, 2014-18
    • Aviva leads non-packaged as the top two pull away
      • Table Figure 2: Aviva continues to lead the market for non-packaged insurance
      • Table Market share of non-packaged SME insurance, 2014-18
  • Product Positioning
    • AXA remains the leading insurer, but competitors have closed the gap
      • Table Figure 3: AA and Aviva have eaten into AXA's dominance
    • AXA's decline saw Aviva challenge for top spot despite its static share
      • Table Figure 4: Aviva cut into AXA's lead as Barclays and Direct Line replaced Zurich and Hiscox
    • Barclays leads the bancassurance re-emergence
      • Table Figure 5: Barclays' strong presence among SMEs gives it a platform to sell insurance
    • AXA and Aviva are consistent throughout all 16 lines
    • Hiscox remains a specialist liabilities insurer
    • Admiral and Direct Line are strong in motor
      • Table Top three players' shares across each product line, 2018
  • Top Five Insurers by Product Lines
    • Top five players for business interruption insurance
      • Table Figure 6: AXA leads the way for business interruption as Zurich and Hiscox dropped out of the top five
      • Table Breakdown of business interruption insurance market shares by size category, 2018
    • Top five players in directors and officers insurance
      • Table Figure 7: Ageas replaced Zurich in the top five as shares saw little change in 2018
      • Table Breakdown of directors and officers insurance market shares by size category, 2018
    • Top five players in employers' liability insurance
      • Table Figure 8: Aviva closed the gap on AXA as Barclays replaced Hiscox in the top five
      • Table Breakdown of employers' liability insurance market shares by size category, 2018
    • Top five players for key man insurance
      • Table Figure 9: Aviva closed the gap on AXA to share market leader position for key man insurance
      • Table Breakdown of key man insurance market shares by size category, 2018
    • Top five players for personal accident and business travel insurance
      • Table Figure 10: AXA and Aviva remain clear of competitors in personal accident and business travel insurance
      • Table Breakdown of personal accident and business travel insurance market shares by size category, 2018
    • Top five players for property insurance
      • Table Figure 11: Aviva recorded strong growth to overtake AXA in property insurance
      • Table Breakdown of property insurance market shares by size category, 2018
    • Top five players for professional indemnity insurance
      • Table Figure 12: AXA extended its lead in the professional indemnity market as the top five remained the same
      • Table Breakdown of professional indemnity insurance market shares by size category, 2018
    • Top five players for public liability insurance
      • Table Figure 13: Aviva closed the gap on AXA in public liability as other competitors fell away
      • Table Breakdown of public liability insurance market shares by size category, 2018
    • Top five players for private medical insurance
      • Table Figure 14: Bupa's share declined by 8.9pp, with AXA now a close second
      • Table Breakdown of private medical insurance market shares by size category, 2018
    • Top five players for cyber insurance
      • Table Figure 15: The top three cyber insurance players account for over a third of the market
      • Table Breakdown of cyber insurance market shares by size category, 2018
    • Top five players for company cars (single) insurance
      • Table Figure 16: AA rose from outside the top five in 2017 to lead the market in 2018
      • Table Breakdown of commercial motor - company car (single) market shares by size category, 2018
    • Top five players for company cars (fleet) insurance
      • Table Figure 17: Admiral and AA showed strong growth to join Aviva at the top of the market
      • Table Breakdown of commercial motor - company car (fleet) market shares by size category, 2018
    • Top five players for company vans (single) insurance
      • Table Figure 18: AA and Admiral overtook AXA and Aviva to lead the market in 2018
      • Table Breakdown of commercial motor - van (single) market shares by size category, 2018
    • Top five players for company vans (fleet) insurance
      • Table Figure 19: Strong growth from AA saw it challenge Aviva in 2018
      • Table Breakdown of commercial motor - van (fleet) market shares by size category, 2018
    • Top five players for vehicle: other (single) insurance
      • Table Figure 20: AA overtook Aviva, which fell to fourth place in 2018
      • Table Breakdown of other commercial motor (single) market shares by size category, 2018
    • Top five players for vehicle: other (fleet) insurance
      • Table Figure 21: Strong growth from Admiral saw it overtake NFU Mutual and AXA
      • Table Breakdown of other commercial motor (fleet) market shares by size category, 2018
  • Key Players
    • AXA formed partnerships to boost broker offerings
    • AXA is focusing on Brexit and modern cyber cover
    • Aviva is targeting independent brokers with new community launch
    • Zurich is aiming to boost its SME business with new appointment
    • Hiscox launched a cyber campaign to raise customer awareness
      • Table Figure 22: Hiscox set out to educate customers on the frequency and dangers of cyber attacks
    • Cyber specialists could threaten mainstream insurers
    • Digital Risks shows innovation can thrive in the SME sector
  • Top Insurers by Net Promotor Score
    • Aviva's impressive NPS could help it challenge AXA at the top of the market
      • Table Figure 23: Aviva's challenge to AXA will be boosted by its excellent customer relationships
      • Table Figure 24: The three leading insurers all received positive feedback across the four lines
      • Table Customer satisfaction among leading insurers in selected lines, 2018
    • The leading insurers saw strong improvements in NPS in 2018
      • Table NPS for leading insurers across key product lines, 2017-18
  • Appendix
    • Abbreviations and acronyms
    • SME
    • Methodology
      • GlobalData's 2018 UK SME Insurance Survey
      • GlobalData's 2018 UK Commercial Broker Survey
    • Bibliography
    • Further reading
    • About GlobalData
      • Table Figure 25: About GlobalData

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