United Kingdom (UK) Personal Insurance Claims Market by Private Motor Insurance, Household Insurance, Travel Insurance and Pet Insurance 2022

United Kingdom (UK) Personal Insurance Claims Market by Private Motor Insurance, Household Insurance, Travel Insurance and Pet Insurance 2022

Summary

This report analyzes the claims landscape across motor, home, travel, and pet insurance. Claims fraud, the methods and channels used for claims, and claim satisfaction are all examined across the lines. The future of the claims landscape is also discussed.

As the UK economy emerges from the COVID-19 pandemic, the primary challenge faced by insurers is a growing inflation rate. In August 2022, the UK inflation rate was at 10.1%. In line with growing inflation, gross claims incurred in 2022 across the four key personal lines all look set to grow compared to 2021. Repair, rebuild, and replacement costs are all growing, driven by supply-side pressures caused by both the pandemic and Brexit.

Scope

  • Around 15% of motor, home, and travel insurance customers made a claim in 2021, with this figure rising to over 30% in the pet line. Of these claims, across all four lines over 80% were accepted.
  • Across all four key personal lines, consumers more commonly make a claim over the phone than through any other channel. This is both time-consuming and costly to insurers and claims handlers, who should encourage consumers to make use of simpler and faster digital channels.
  • Increased use of devices based upon the Internet of Things, enhanced digitalization across claims channels, and improved fraud detection methods will all act to help insurers reduce the impact of growing claims in the future.
Reasons to Buy
  • Determine the extent of claims inflation across the four key personal lines and ways to react to these growing costs.
  • Understand how consumers derive satisfaction from the claims process and use these insights to create new solutions for customers.
  • See the role of technology in reducing the impact, frequency, and handling costs of claims.


  • Executive summary
  • Background
    • Over 80% of claims were accepted in each personal line in 2021
    • Inflation is leading to increased claims costs across all lines
  • Private Motor Insurance
    • Claims in the motor line fell as a result of the pandemic
    • Claims notified reflect the level of road traffic during COVID-19
      • Table UK motor insurance number of claims notified (000s), 2017-Q1 2022
    • Average claim costs will trouble the industry going forward
      • Table UK motor insurance average claim cost (GBP), 2017-Q1 2022
    • Claims recorded by the CRU fell despite an increase in casualties
    • Some consumers expect COVID-19 to impact future mileage
    • Motor insurance consumers favor making claims over the phone
    • Over three quarters of motor customers claim directly
    • Customers are generally satisfied with their claims experience
    • LV
    • Motor insurance fraud is the costliest to the entire industry
  • Household Insurance
    • Gross claims in the home line have been growing since 2019
    • The number of claims notified has been falling year on year
      • Table UK household insurance number of claims notified (000s), 2017-Q1 2022
    • The average cost of home insurance claims has been rising
      • Table UK household insurance average claim cost (GBP), 2017-Q1 2022
    • The House Rebuilding Cost Index is above inflation
    • Digital claims channels could be used more in home insurance
    • Household customers tend to claim directly with their provider
    • Claim satisfaction is largely positive in the home line
    • Home insurance customers are satisfied with the leading players
    • The value and frequency of fraud fell in the home line in 2020
  • Travel Insurance
    • Travel insurance claims were most impacted by the pandemic
    • Cancellations were the main cause of travel claims in 2020
      • Table UK travel insurance number of claims notified (000s) and average claim cost (GBP), 2016-20
    • The pandemic was a key reason behind travel claims in 2021
    • Travel insurers should redirect customers to online channels
    • Travel insurance claims are usually directly with the insurer
    • Claim satisfaction increased in 2021 as policies were clarified
    • The value of fraudulent travel insurance claims rose in 2020
  • Pet Insurance
    • Gross claims incurred increased sharply in 2021 in the pet line
    • The number of claims notified increased for all pet types in 2021
      • Table UK pet insurance number of claims notified (000s) and average claim cost (GBP), 2017-21
    • 56.4% of pet insurance customers use digital claims channels
    • Over 85% of pet insurance claims are made directly
    • Pet insurance claims receive the lowest satisfaction scores
    • Pet insurance fraud is least common and costly to insurers
  • Appendix
    • About GlobalData

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