Research and Markets: Report Provides Analysis of the Performance of the Key Sectors of the UK Private Motor Insurance Market
 |
DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c86434) has announced the addition of “Market Developments in UK Private Motor Insurance 2007” to their offering.
The brief analyzes the UK private motor insurance markets performance in 2006 and 2007, providing insight into market growth and profitability. The report concludes with forecasts for the size and profitability of the private motor market under three different scenarios up to 2012.
Scope
-- Analysis of the performance of the key sectors of the UK private motor insurance market
-- Detailed market forecasts based on The in-house model and interviews with leading insurers
Highlights of this title
Premium income from private non-comprehensive policies decreased due to consumers shifting away from this type of cover, as non-comprehensive premium rates rose on average over the year. Consumers have found it much easier in recent years to obtain comprehensive coverage and so have naturally opted for the better cover.
Key reasons to purchase this title
-- Obtain the latest market size and profitability analysis of the UK private motor insurance market
-- Develop your future business plans from an informed viewpoint with The market forecasts under three different scenarios
Contents
Overview
Catalyst
Summary
Market Context
Introduction
The UK private motor insurance market started to harden at the end of 2006 and grew in 2007.
The market hardened late in 2006, which led to strong gains in premium income for 2007.
UK private motor insurance GWP increased to an estimated £10.1 billion in 2007 as the market hardened.
Private motor insurance GWP contracted by 0.9% in 2006 as the market only hardened late in the year.
The comprehensive and non-comprehensive segments both declined in 2006, but rebounded in 2007.
Comprehensive motor GWP suffered the worst contraction of the three private lines in 2006.
Non-comprehensive premium income suffered as fewer motorists chose this cover.
The motorcycle market was the only part of private motor to increase in 2006, although it contracted in 2007.
Late rises in premium rates and low growth in private car numbers depressed GWP in 2006.
Private motor insurance premium rates recovered late in 2006 and have climbed in 2007.
Comprehensive premium rates grew towards the end of 2006 and continued to increase in 2007.
Non-comprehensive premium rates increased significantly in 2006, but trailed the comprehensive market in 2007.
The UK private vehicle parc continued to grow slowly in 2006.
Private car numbers increased in 2006, although the rate of growth has slowed.
New registrations for private cars declined in 2006.
Although the private car parc is aging it remains mostly modern in composition.
Motorcycle numbers continue to climb, although growth has slowed.
Underwriting losses expanded in 2006, driven by high costs and lower net revenue.
The private motor underwriting result deteriorated in 2006.
Increases in total outgoings were driven by higher commissions and reserving, despite lower claims costs.
Commissions and expenses rose 3.1% in 2006, while insurers reserved more than they released.
Net claims costs fell in 2006, moderating the increase in total outgoings.
Claims inflation continue to plague the market, but accident and theft rates have fallen.
Overall claims inflation increased significantly in 2006.
Bodily injury claims are more expensive than other claims.
Falling road traffic accident rates will have given insurers some respite on their claims bills.
Road traffic accident numbers have declined over the last nine years.
Road traffic accidents have declined even as car numbers have increased, representing a fall in frequency.
Casualty rates have fallen steadily, mirroring the decline in road traffic accidents in 2006.
Theft rates continue to fall, representing a positive trend for private motor insurers.
A number of initiatives aimed at cost savings were undertaken in 2006 and 2007.
The IFB has been very active in the investigation of professional fraud over the year it has been in operation.
The tightening up of MID requirements should drive down uninsured driving leading to savings for insurers.
Insurers remain divided over whether rehabilitation offers real savings on claims costs.
With the arrival of Copart, recycled parts can assist insurers in curbing repair costs.
Insurers have pushed online distribution of motor insurance certificates and could save up to £11m a year.
Commercial motor GWP declined in 2006, but the market increased its underwriting profit.
The commercial motor market contracted slightly more than the private market in 2006.
The total motor markets underwriting loss increased marginally to £204m in 2006 33.
Despite being in a soft market, commercial motor improved its profitability in 2006.
Future Decoded
Introduction
Private motor GWP is forecast to reach £12.5 billion by 2012 under neutral market conditions.
A hardening market in 2008 and 2009 should result in significant premium rate growth.
The UK private motor insurance market is predicted to be worth £12.5 billion in 2012.
The private motor insurance market is forecast to reach profitability in 2009.
Under optimal conditions the private motor market will reach £12.9 billion by 2012.
Less competition could allow for greater price increases in 2008 and 2009.
The market will grow by over 10% in 2008 allowing it to reach a value of £12.9 billion in 2012.
With less competitive pricing the market will produce three years of profits.
In the pessimistic scenario GWP will only reach £12.4 billion in 2012 as competition keeps premium inflation down in 2008.
More intense competition will keep premium rate increases low according to the pessimistic scenario.
The private motor insurance market will only reach a value of £12.4 billion in 2012 in the pessimistic scenario.
Underwriting losses will continue throughout the forecast period in the pessimistic scenario.
The total motor market, under neutral conditions, will reach a value of £16.6 billion in 2012.
The total motor market is forecast to grow at 4.3% a year in the forecast period.
The total market is forecast to return an underwriting profit in 2008.
APPENDIX
List of Tables
List of Figures
For more information visit http://www.researchandmarkets.com/reports/c86434.
Source: Datamonitor
