United Kingdom (UK) Commercial Property Insurance Market Size, Trends, Competitor Dynamics and Opportunities
Description
United Kingdom (UK) Commercial Property Insurance Market Size, Trends, Competitor Dynamics and Opportunities
Summary
This report analyzes the UK commercial property insurance market, looking at drivers of uptake across different demographics and dwelling types. It discusses the claims landscape in 2021, as well as the commercial property market across London and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. Future impactors in the market are also examined, including climate change, underinsurance, and the changing office environment.
Gross written premiums (GWP) in the UK commercial property insurance market grew by 20.2% to reach GBP9 billion in 2021. The market’s major hardening of rates is responsible for this growth, while the demand for policies only slightly increased. Commercial property insurers paid a high price in 2021. Gross claims rose by 4.4% in 2021, above their average level over the previous 10 years. In 2021, the claims landscape was dominated by a 31.0% increase in weather-related claims and a 22.5% increase in fire and explosion claims. As restrictions related to the pandemic began to loosen and enterprises resumed operations, there were 24.9% fewer claims for business interruptions. As building prices continue to rise and the economy struggles to recover from both the epidemic and Brexit, claims inflation—which is mostly driven by global supply-side constraints—will maintain the hardening market.
Scope
Summary
This report analyzes the UK commercial property insurance market, looking at drivers of uptake across different demographics and dwelling types. It discusses the claims landscape in 2021, as well as the commercial property market across London and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. Future impactors in the market are also examined, including climate change, underinsurance, and the changing office environment.
Gross written premiums (GWP) in the UK commercial property insurance market grew by 20.2% to reach GBP9 billion in 2021. The market’s major hardening of rates is responsible for this growth, while the demand for policies only slightly increased. Commercial property insurers paid a high price in 2021. Gross claims rose by 4.4% in 2021, above their average level over the previous 10 years. In 2021, the claims landscape was dominated by a 31.0% increase in weather-related claims and a 22.5% increase in fire and explosion claims. As restrictions related to the pandemic began to loosen and enterprises resumed operations, there were 24.9% fewer claims for business interruptions. As building prices continue to rise and the economy struggles to recover from both the epidemic and Brexit, claims inflation—which is mostly driven by global supply-side constraints—will maintain the hardening market.
Scope
- GWP in the UK commercial property market grew to approximately GBP9 billion in 2021, a growth rate of 20.2%.
- Gross claims rose by 4.4% in 2021, above their average level over the previous 10 years, reaching GBP2.4 billion.
- A 31.0% rise in weather-related claims and a 22.5% rise in fire and explosion claims dominated the claims landscape in 2021. There were 24.9% fewer claims for business interruptions when the pandemic-related limitations started to ease and businesses resumed operations.
- Aviva remains the market leader with a market share of 15.2%, growing its GWP to GBP1.37 billion in 2021.
- Analyze the drivers of growth within the UK commercial property market.
- Determine areas of concern for insurers and the wider market, including in the claims landscape.
- Recognize the impact of Brexit and inflation on the market.
- Ascertain the market shares of the leading players.
- Examine future opportunities and challenges within the market.
Table of Contents
34 Pages
- Market overview
- Key findings
- Critical success factors
- The UK commercial property market grew significantly in 2021
- The year 2021 was expensive for commercial property claims
- The construction sector resumes in 2021, recovering from 2020
- Investment in London experienced the largest increase since 2017
- Tax incentives and regulations have an impact on people’s investment in commercial property
- More commercial-to-residential conversions will occur as housing demand rises and towns level up
- Aviva is still the market leader by some distance
- Commercial property insurance will grow to GBP10.8 billion in 2026
- Brexit and COVID-19 will make for a harder recovery for the construction industry than first thought
- Underinsurance problems are exacerbated by global supplyside issues
- ESG initiatives will present opportunities and difficulties for insurers
- Technology is becoming more valuable to commercial property insurers
- The changing landscape of office working represents an opportunity for insurers
- Abbreviations and acronyms
- Methodology
- Secondary sources
- Further reading
- About GlobalData
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