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United Kingdom (UK) Commercial Property Insurance Market Dynamics and Opportunities 2023

Publisher GlobalData
Published Nov 30, 2023
Length 37 Pages
SKU # GBDT18574863

Description

United Kingdom (UK) Commercial Property Insurance Market Dynamics and Opportunities 2023


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 2022, the commercial property market across London, and the 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, sustainability, underinsurance, and the changing office environment.

GlobalData expects gross written premiums in the UK commercial property insurance market to grow by 9.1% to GBP13.3 billion by the end of 2023, following its 18.5% growth to GBP12.2 billion in 2022. The main causes of the increase in 2022 were the ongoing high rates of inflation and supply chain issues that increased rebuild costs. At the same time, the claims environment returned to pre-pandemic levels, having experienced improvements in 2022. This improvement was mostly caused by a 16.4% decline in gross claims incurred, particularly a significant 48.3% decrease in business interruption claims. There was a 5.8% drop in claims notified, from 173,000 to 163,000, which helped to lower the total value of claims incurred.

Scope
  • The UK commercial property insurance market is expected to grow by 9.1% to GBP13.3 million in 2023, following an 18.5% growth in 2022.
  • Gross claims incurred declined by 16.4% in 2022, driven particularly by a significant 48.3% decrease in BI claims.
  • There was a 5.8% drop in claims notified, from 173,000 to 163,000, which helped to lower the total value of claims incurred.
  • Aviva holds its position as market leader with a 12.3% share of the market. It is expected to increase its share in 2023 courtesy of it now being able to underwrite engineered timber, showing its dedication to environmental, social, and governance (ESG) initiatives.
Reasons to Buy
  • 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, the cost-of-living crisis, and inflation on the market.
  • Ascertain the market shares of the leading players.
  • Examine future opportunities and challenges within the market.

Table of Contents

37 Pages
    • Market overview
    • Key findings
    • Critical success factors
    • The UK commercial property insurance market continued its strong growth in 2022
    • The claims landscape for commercial property recorded falls in both claims incurred and notified in 2022
    • The construction sector continues to sustain growth in 2022, after being hampered in 2020
    • Investment in London slows down and is expected to fall again in 2023
    • Tax incentives and regulations have an impact on commercial property investment
    • Commercial-to-residential conversions will affect the commercial property market
    • Aviva remains the largest commercial property insurance provider in 2022
    • Further developments
    • Commercial property insurance is expected to grow to GBP15.2 billion by 2027
    • Inflationary pressures and high interest rates will impact the construction industry
    • The underinsurance gap remains but appears to be closing
    • Sustainable material underwriting will become more relevant as the nation transitions to net zero
    • Technology offers insurers better claims assessment and cheaper property valuations
    • Changing office working models can present both an opportunity and drawback for insurers
    • Abbreviations and acronyms
    • Methodology
    • Secondary sources
    • Further reading
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