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Report Overview

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

United Kingdom Motor Insurance Market Outlook

The United Kingdom motor insurance market size reached approximately USD 23.54 billion in 2023. The market is projected to grow at a CAGR of 4.1% between 2024 and 2032, reaching a value of around USD 34.02 billion by 2032.

Key Takeaways

Reference Time Period Statistic Value
Association of British Insurers July-September 2023 Average annual premium for private car insurance £561
ABI data 2021 Lowest annual car insurance premiums for individuals aged 66 to 70 GBP 261
UK motorists 2024 Record average annual insurance cost Nearly £1,000

Motor insurance, variously known as automobile insurance or car insurance, is a form of insurance coverage designed to provide financial protection against losses or damages related to motor vehicles. It involves a contractual agreement between an insurance company (insurer) and a vehicle owner (policyholder), where the insurer agrees to compensate the policyholder for certain specified losses or liabilities arising from the use of the insured vehicle.

One of the prominent trends propelling the United Kingdom motor insurance market growth is the integration of advanced technologies in vehicles. Telematics, for instance, plays a crucial role in transforming the domain. Telematics devices installed in vehicles enable insurers to gather real-time data on driving behaviour. This data is then used to assess risk more accurately, leading to personalised insurance policies. As technology continues to evolve, the adoption of artificial intelligence and machine learning is also on the rise, aiding in claims processing, fraud detection, and risk assessment.

Key Trends and Developments

Personalised rates via telematics, expanded electric vehicle coverage, digital enhancements for better customer service, and updated policies for shared mobility are positively impacting the United Kingdom motor insurance market growth

Date Company Event
Jan 18th 2024 Qover Announced the launch of its motor insurance solution in the UK, enabling vehicle manufacturers to provide digital insurance programmes throughout Europe.
Jan 18th 2024 QuestGates Enhanced its UK motor claims presence with the acquisition of Kent-based Claims Management & Adjusting Ltd (CMA), specialising in vehicle claims for nearly three decades.
Dec 6th 2023 The Green Insurer Launched a car insurance product powered by Cambridge Mobile Telematics (CMT) that analyses driving data and rewards drivers for driving responsibly.
Nov 20th 2023 AA Insurance Services Renewed its partnership with Europcar Mobility Group UK for five years. Europcar's 40,000-vehicle fleet provides like-for-like replacements, enhancing AA's ability to meet the demands of growing EV drivers.
Trend Description
Rising popularity of personalised premiums Insurers leverage telematics and data analytics to offer tailored motor insurance rates based on individual driving behaviour, promoting safer practices and fairer pricing.
Increasing coverage of electric vehicles Increasing adoption of electric cars prompts insurers to adapt coverage models, address unique risks, and incentivise eco-friendly driving, reflecting the growing EV market in the UK.
Growing focus on providing new products Motor insurance companies are increasingly developing new policies that are different from the traditional 12-month policy. Gen Z is the main group of customers wanting something other than a basic motor policy.
Updating policies to cover shared mobility solutions Insurers adapt policies to accommodate the rise of ride-sharing and car-sharing services, ensuring comprehensive coverage for users engaging in diverse and evolving forms of transportation.

United Kingdom Motor Insurance Market Trends

The motor insurance market in the UK is highly competitive, with numerous insurers vying for market share. The entry of new players, including Insurtech startups, has intensified competition, prompting traditional insurers to innovate and enhance their offerings. Price competitiveness, product differentiation, and customer service play crucial roles in gaining a competitive edge. Insurers that leverage technology, data analytics, and customer insights can position themselves more effectively in this competitive landscape.

Regulatory developments have a significant impact on the United Kingdom motor insurance market. Changes in regulations often influence pricing structures, coverage requirements, and market competition. The implementation of new laws, such as those related to environmental standards or safety measures, can affect the insurance industry by altering risk profiles and influencing underwriting practices. Staying compliant with evolving regulations is crucial for insurers to navigate the market effectively.

Market Segmentation

“United Kingdom Motor Insurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup Categories
Policy Type Liability Insurance, Comprehensive Coverage, Collision Coverage, Personal Injury Protection
Premium Type Personal Insurance Premiums, Commercial Insurance Premiums
Distribution Channel Direct Response, Insurance Agents, Banks, Others

The demand for liability insurance is expected to significantly grow in the forecast period

Liability insurance is expected to be a significantly drivee the United Kingdom motor insurance market in the coming years. In the context of motor insurance, liability insurance plays a crucial role in covering the policyholder's legal obligations in the event of an accident where they are deemed at fault. There are typically two main components of liability insurance in motor insurance: bodily injury liability and property damage liability.

Meanwhile, comprehensive coverage is the most extensive type of coverage. It includes protection for third-party liability, fire, theft, and damage to your own vehicle, offering the highest level of protection.

On the other hand, Personal Injury Protection (PIP) differs from comprehensive coverage by focusing on motor accident injuries, covering medical bills, lost wages, and related costs regardless of fault. In contrast, comprehensive insurance safeguards against non-collision incidents like theft, vandalism, and natural disasters, providing optional protection for a vehicle's damage or loss. Both serve distinct purposes in enhancing auto insurance coverage.

Banks are expected to account a major portion of the United Kingdom motor insurance market share in the coming years

Banks are likely to be the largest source of insurance acquisition in the forecast period. However, consumers often associate banks more with financial services such as loans and savings rather than motor insurance. Due to this, many consumers in the UK prefer to purchase motor insurance directly from insurance companies through online platforms, over the phone, or through other direct channels without intermediaries. This approach allows for easy comparison of quotes and a streamlined purchasing process.

Competitive Landscape

Some of the major players in the United Kingdom motor insurance market are innovating with digital technologies to create hyper-personalised policies

Company Founded Headquarters Insurance Products
Admiral Group plc 1993 Wales, United Kingdom Car, home, travel, financial services
Aviva Group 1696 London, United Kingdom Life, general, health, asset management
UK Insurance Limited 1974 Leeds, United Kingdom Motor and home
Hastings Group Holdings Ltd 1996 East Sussex, United Kingdom Car, bike, van, home

Other key players in the United Kingdom motor insurance market are Liverpool Victoria Financial Services Limited, Zurich Insurance Company Ltd., Axa S.A., General Re Corporation, and Royal & Sun Alliance Insurance Ltd., among others.

Major insurance companies in the country are increasingly adopting digital technologies to create more personalised policy for consumers. The companies are inclined to provide innovative solutions and increased adjustability to target the needs of the most tech savvy consumers.

This development can be attributed to few key factors presented by the Generation Z, including unfamiliarity and detachment with traditional insurance products. Moreover, it is more presumable for Gen Z to manage their transactions and documents via mobile app for convenience.

The demand for convenience has been a major driver for the United Kingdom motor insurance market growth. A majority of the country’s population is demanding for ability to adjust their insurance coverages on the basis of their needs and affordability.

Urban Jungle, a UK-based InsurTech and managing general agent, has made a major development, which aided the rapidly expanding of its customer base with a contemporary approach to renters' insurance. It offers streamlined processes allowing customers to secure coverage in under five minutes, flexible pay-as-you-go monthly payment options, and customisable policies for high-value items like laptops and gadgets. Currently, Urban Jungle serves over 20,000 customers, demonstrating significant growth in the market.

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Policy Type
  • Premium Type
  • Distribution Channel
Breakup by Policy Type
  • Liability Insurance
  • Comprehensive Coverage
  • Collision Coverage
  • Personal Injury Protection
Breakup by Premium Type
  • Personal Insurance Premiums
  • Commercial Insurance Premiums
Breakup by Distribution Channel
  • Direct Response
  • Insurance Agents
  • Banks
  • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Admiral Group plc
  • Aviva Group
  • UK Insurance Limited
  • Hastings Group Holdings Ltd.
  • Liverpool Victoria Financial Services Limited
  • Zurich Insurance Company Ltd.
  • Axa S.A.
  • General Re Corporation
  • Royal & Sun Alliance Insurance Ltd.
  • Others

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

In 2023, the market reached an approximate value of USD 23.54 billion.

The market is estimated to grow at a CAGR of 4.1% between 2024 and 2032.

The market is estimated to witness a healthy growth during 2024-2032 to reach around USD 34.02 billion by 2032.

The market is driven by the increasing adoption of advanced technologies to provide enhanced customer experience while opting for an insurance.

The growing competition in the market and the implementation of new laws are expected to propel the market development in the coming years.

The major policy types are liability insurance, comprehensive coverage, collision coverage, and personal injury protection.

The different premium types are personal insurance premiums and commercial insurance premiums.

The key players in the market include Admiral Group plc, Aviva Group, U K Insurance Limited, Hastings Group Holdings Ltd., Liverpool Victoria Financial Services Limited, Zurich Insurance Company Ltd., Axa S.A., General Re Corporation, and Royal & Sun Alliance Insurance Ltd., among others.

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63 Fiona Drive, Tamworth, NSW

+61 448 06 17 27

C130 Sector 2 Noida, Uttar Pradesh 201301

+91-858-608-1494

40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.

+63 287899028, +63 967 048 3306

6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London

+44-753-713-2163

193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City

+84865399124