United Kingdom (UK) Household Insurance Market Size, Trends, Competitor Dynamics and Opportunities
Description
United Kingdom (UK) Household Insurance Market Size, Trends, Competitor Dynamics and Opportunities
Summary
This report analyzes the UK household insurance market, looking at drivers of uptake across different demographics and dwelling types. The report discusses the claims landscape in 2021 as well as the housing market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, as are newcomers and insurtechs within the space. Future impactors in the market, including climate change, smart home devices, and changing living arrangements, are also covered.
Gross written premiums (GWP) declined by 0.2% in 2021. This was driven by a 1.4% fall in total policies written across all three products in the home insurance space. The overall average cost increased by 1.3% in 2021. However, average costs for both buildings-only and contents-only have fallen in 2021, with average premiums for each decreasing by 0.4% and 1.4%, respectively. Despite increases in average claim costs, house prices, and house repair costs, GWP still decreased. House price increases have been driven by the stamp duty holiday that was in place between July 2020 and October 2021 boosting home purchases. The bounce back from the pandemic sped up new house-build completions, and inflation and global supply-chain issues have caused repair costs to rise. We forecast a fall in GWP in the market in 2022 and for it to decline gradually year on year until 2026.
Scope
Summary
This report analyzes the UK household insurance market, looking at drivers of uptake across different demographics and dwelling types. The report discusses the claims landscape in 2021 as well as the housing market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, as are newcomers and insurtechs within the space. Future impactors in the market, including climate change, smart home devices, and changing living arrangements, are also covered.
Gross written premiums (GWP) declined by 0.2% in 2021. This was driven by a 1.4% fall in total policies written across all three products in the home insurance space. The overall average cost increased by 1.3% in 2021. However, average costs for both buildings-only and contents-only have fallen in 2021, with average premiums for each decreasing by 0.4% and 1.4%, respectively. Despite increases in average claim costs, house prices, and house repair costs, GWP still decreased. House price increases have been driven by the stamp duty holiday that was in place between July 2020 and October 2021 boosting home purchases. The bounce back from the pandemic sped up new house-build completions, and inflation and global supply-chain issues have caused repair costs to rise. We forecast a fall in GWP in the market in 2022 and for it to decline gradually year on year until 2026.
Scope
- In 2021, the UK’s home insurance market shrank by 0.2% to GBP6.31 billion.
- For combined policies, the average premium price rose by 1.4% in 2021. They declined by 0.4% and 1.4%, respectively, for buildings-only and contents-only insurance.
- All types of claims notified fell, except for escape of water. Gross claims for escape of water increased by 17.5% in 2021 as a result of lockdown relaxations meaning fewer individuals were at home.
- Less than half of all UK renters have a contents-only insurance policy, making Generation Rent a large, untapped demographic for insurers.
- Identify underlying drivers of demand and premium prices for home insurance products.
- Examine the nature of the claims landscape in 2021.
- Compare the performances of market leaders throughout the year.
- Determine how insurtechs are attempting to gain traction in the market.
- Understand the progression of home insurance lines into the future.
Table of Contents
44 Pages
- Market overview
- Key findings
- Critical success factors
- The UK household insurance market's growth has been largely stagnant in recent times
- Government and regulatory policies in home insurance
- The claims landscape in 2021
- The housing market is recovering after the pandemic
- Aviva continues to lead the market
- Insurtechs and recent developments
- The market is expected to slowly shrink
- Smart home devices and the future of home insurance
- Other providers may enter the market
- Climate-related weather events will affect claims
- The cladding situation can be assisted by insurers
- Abbreviations and acronyms
- Methodology
- Secondary sources
- Further reading
- About GlobalData
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