UK Commercial Property Insurance: Market Dynamics & Opportunities 2019

UK Commercial Property Insurance: Market Dynamics & Opportunities 2019

  • November 2019 •
  • 43 pages •
  • Report ID: 5582679 •
  • Format: PDF
UK Commercial Property Insurance: Market Dynamics & Opportunities 2019

The commercial property insurance market saw stable gross written premiums (GWP) growth again in 2018.The market remains competitive, with the leading players retaining similar shares year on year.

This keeps premium rates at stubbornly low levels.Profitability remains significantly affected by weather conditions, and a sharp rise in claims at the beginning of 2018 forced a competitive market to harden rates, resulting in the worst profitability results in 12 years.

Besides weather, the other key factor affecting the market is Brexit, which insurers also have no control over. In the long term we expect growth in GWP up until 2024, with growth rates improving after 2020 when the UK’s Brexit position should be clearer.

This report provides in-depth analysis of the UK commercial property insurance market.Among the points discussed include the size of the market and performance ratios, as well as changes in premiums, claims, incidents, regulations, and opportunities.

The report provides a thorough overview of the market along with future forecasts.

- In 2018 the commercial property market grew by 4.1% to £5.6bn in GWP, with a five-year compound annual growth rate of 3.2%.
- Underwriting profitability fell to a 10-year low in 2018 as insurers recorded a loss of £317m.
- All new construction work saw a slight rise in 2018, although growth slowed significantly from 2017. In addition, new orders declined for the second year running due to Brexit uncertainty.
- Aviva continues to lead the market, after growing its market share in 2019 to 16.9%. AXA overtook Zurich to capture second place, with Allianz and RSA making up the rest of the top five.

Reasons to buy
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and significant market developments occur.
- Be prepared for how the commercial property sector could be affected following the UK’s decision to leave the EU.

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