In the UK the Proportion of Private Motor Insurance Sold Online is Predicted to Reach 29 Per Cent by 2009

DUBLIN, Ireland--Sept. 1, 2006--Research and Markets (http://www.researchandmarkets.com/reports/c41484) has announced the addition of Five Factors That Will Shape the Future of UK General Insurance to their offering.

This brief provides five key predictions for the state of the UK general insurance market in 2007 and beyond, and explains the impact of these predictions on the insurance industry. Predictions discussed include the rise of Internet distribution and the length and severity of the soft cycle.

Scope of this title:

-- The author estimates the percentage of motor and household insurance sold via the Internet and forecasts for the growth of this channel to 2009

-- An overview of forecasts for the soft cycle, explaining why it is expected to be less severe than previous soft cycles

-- Forecasts for the creditor market, where media scrutiny is expected to lead to a slump as penetration rates and commission rates fall

Highlights of this title:

The proportion of private motor insurance sold online is predicted to reach 29 per cent by 2009, up from an estimated 12 per cent in 2005. The predicted growth will be driven largely by the direct channel and the continued transference of business from the telephone to the Internet.

Premium income growth is forecast to pick up for many lines in 2007 with the result that insurers profitability should suffer less in this soft cycle than in previous slumps. The last soft cycle lasted from 1994 to 1999, therefore we also believes that this soft cycle will be slightly shorter than the previous cycle.

The regulatory and media scrutiny of the PPI insurance sector is likely to lead to a drop in penetration and commission rates. This will lead to declining premium income, before the market stabilizes beyond 2007. The compound annual growth rate for all lines of PPI between 2006 and 2010 is forecast to be just 1.7 per cent under these assumptions.

Reasons to order your copy:

-- Understand the key drivers of the rise of Internet distribution and its likely effect on the market

-- Get our opinion on the length and severity of the current soft cycle

-- Understand how broker consolidation, the Legal Services Bill, and scrutiny of PPI insurance is likely to influence the general insurance market

Contents Include:

Our View

Catalyst

Summary

Methodology

Analysis

Appendix

For more information visit http://www.researchandmarkets.com/reports/c41484

Source: Datamonitor