Competition in UK Commercial Property Insurance 2008: Industry Report

Competition in UK Commercial Property Insurance 2008

Product Type: Market Research Report
Published by: Datamonitor
Published: June 2008
Product Code: R313-33520

Description

Introduction

This report provides a comprehensive analysis of the commercial property insurance market in the UK. It looks at the competitive landscape providing market share information and discussing the latest competitive developments.

Scope

Premium information and market share by competitor
Discussion of merger and acquisition activity
Analysis of key ratios

Highlights

In 2006, the vast majority of property insurance was underwritten by the company market. Of the £12.4 billion total property insurance market, £10.7 billion was accounted for by company market players, while the remaining £1.7 billion was underwritten by Lloyd's and other companies.

The smaller players tended to be more profitable in 2006 although Norwich Union and Zurich bucked this trend with combined ratios more than six percentage points better than the average ratio of 88.2%.

During 2007, the market witnessed further consolidation, with both brokers and insurers purchasing other brokers. Towergate continued to add to its ranks throughout the year, and the acquisition of the Broker Network at the end of 2007 greatly increased its ability to negotiate with insurers.

Reasons to Purchase

Gain a deeper insight into key trends in the UK commercial property market
Gain an understanding of the latest competitive developments within commercial property insurance

Table of Contents

DATAMONITOR VIEW
CATALYST
SUMMARY
COMPETITIVE DYNAMICS: Introduction; 2006 saw certain competitors improve their market position; Royal & SunAlliance became the new market leader in 2006; Norwich Union has moved into number two position in the commercial property insurance market; Zurich's market share declined in 2006 however it retained its third place ranking; AXA saw its market share increase by 1.2 percentage points in 2006; Allianz's market share declined by 1.3 percentage points in 2006; NIG saw its market share increase marginally to 4.8%; ACE occupies number seven in the rankings of commercial property insurers; Ecclesiastical saw a modest growth in its commercial property insurance premium income in 2006; New Hampshire saw a small gain in market share in 2006; St Paul gained a small amount of market share in 2006; ABI members underwrote the vast majority of property insurance in 2006; The combined ratios for the top ten commercial property insurers demonstrated a wide range of profitability; Competition in the commercial property insurance market is still strong with major players looking to increase market consolidation; Competition in the SME market is still strong with the aggression of established players limiting the impact of new entrants; Consolidators continue to remain highly active in the market; AXA acquired Smart & Cook commercial brokers; Oval made a succession of purchases throughout 2007; Jelf's acquisitions included taking over a key rival; Allianz secures SME partnership with Tett Hamilton; Some of the major insurance providers are looking to increase their regional presence
APPENDIX: Definitions; ABI definitions; Brokers; National brokers; Chain brokers & telebrokers; Other intermediaries & brokers; Direct; Other company agents; Utilities/retailers/affinity groups; Company staff; Banks/building societies; Written premiums; Gross premiums; SynThesys Non-Life database definitions; Total commercial property; Further reading; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: Market share of the top 10 commercial property insurers, 2002-06; Table 2: Property GWP split between ABI members and Lloyd's/other, 1996-2006; Table 3: Combined ratios of the 10 largest commercial property insurers, 2006
List of Figures: Figure 1: Royal & SunAlliance took the helm as commercial property market leader in 2006; Figure 2: The company market underwrote the vast majority of property insurance in 2006; Figure 3: St Paul recorded a relatively low combined ratio on commercial property insurance in 2006

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