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United Kingdom (UK) SME Insurance Market Dynamics, Challenges, Growth Opportunities and Forecast, 2022-2026

Publisher GlobalData
Published Mar 08, 2023
Length 47 Pages
SKU # GBDT17855616

Description

United Kingdom (UK) SME Insurance Market Dynamics, Challenges, Growth Opportunities and Forecast, 2022-2026

Summary

The UK SME market generated approximately GBP10.5 billion in gross written premiums (GWP) in 2021, growing by 4.5%. The primary factor contributing to GWP growth was a large year-round hardening of premiums. Many insurance lines experienced significant increases in the cost of repayments due to inflation and issues with the global supply chain, which led insurers to raise premiums. In particular, property and cyber insurance saw premium prices rise. Penetration rates across most product lines increased compared to 2020, allowing insurers to grow the volume of policies sold. This was despite the number of SMEs declining in 2021.

This report looks at the state of the UK SME insurance market. It sizes the market in 2022 and forecasts future GWP until 2026. It utilizes GlobalData’s annual UK SME Insurance Survey to analyze SMEs’ attitudes to insurance. The report also explores the key factors that will impact the market in 2022 and beyond.

Scope
  • The number of SMEs in the UK declined by 1.5% in 2022.
  • The cost-of-living crisis is SMEs’ biggest concern, with 51.9%% either ‘very concerned’ or ‘extremely concerned.’
  • The SME insurance market is estimated to have been worth GBP10.9 billion in 2022, up 4.3% on 2021.
  • Business interruption insurance penetration rates showed the biggest growth in 2022, rising by 5.9 percentage points (pp). This is likely due to the impact of the Russia/Ukraine conflict.
Reasons to Buy
  • Learn about the significance of SMEs within the commercial insurance market and how they are influenced by the UK economy.
  • Identify the effects of the cost-of-living crisis on the UK SME insurance space.
  • Discover GlobalData’s forecasts for the market.
  • Recognize the challenges faced by UK SMEs.
  • Identify growth opportunities in the SME market.

Table of Contents

47 Pages
    • Claims inflation has led to steady premium growth
    • Key findings
    • Critical success factors
    • Introduction
    • SMEs account for the vast majority of UK businesses - In 2022, the number of SMEs fell for the second year in a row
    • Macroeconomic impact on the SME market
    • UK GDP growth has been sluggish since Q1 2022
    • The cost-of-living crisis is a huge concern for SMEs
    • The SME insurance market registered steady growth in 2021
    • Packaged insurance plans are common, especially among small- and medium-sized businesses
    • COVID-19 cancellations have fallen as SMEs return towards normalcy
    • Employers' liability take-up increased in 2022, although it remains low given that the product is a legal requirement
    • Insurers should offer usage-based policies to help SMEs maintain their cover
    • Penetration rates fluctuate across lines, but on the whole key products have increased
    • Larger SMEs are more likely to have most types of insurance
    • SME GWP is set to rise steadily to GBP12.1 billion by 2026f
    • Abbreviations and acronyms
    • Definitions
    • Methodology
    • Secondary sources
    • Further reading
  • About GlobalData
  • Contact Us

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