Flooding in: The industry's performance has improved following high flood-related payouts

General insurance providers offer products including motor insurance, property and content insurance, general liability insurance, accident insurance and health insurance. The industry generates revenue by charging its customers premiums and investing this income. Over the past decade, the share of total revenue that is generated through investments has fluctuated greatly. IBISWorld expects investment conditions to be volatile over 2018-19, as a result of financial market turbulence due to uncertainty created by the UK’s decision to leave the European Union...read more.

Industry Statistics & Market Size
Revenue
£62.2bn
Annual Growth 14-19
3.8%
Forecast Growth 19-24
Profit
Employment
109,138
Businesses
489

Industry Threats & Opportunities

  • The industry has performed well, despite uncertainty stemming from the EU referendum
  • Although the stock market has rebounded rapidly, the industry is expected to be hit by the effects of the referendum on consumers
  • Underemployment is expected to limit growth, although investment returns are expected to rise
  • Industry Report - Industry Key Buyers Chapter

    The General Insurance industry currently exhibits a low level of market share concentration. The top four players in the industry are estimated to account for 19.9% of net general insurance premiums in 2018-19. Aviva is the largest company, with a market share of 6.6%. Due to their size and financial position, major players like Aviva and Direct Line have the capital to invest more heavily in directly distributing general lines, such as motor insurance cover, without complex conditions.In the years before the financial crisis, industry concentration was gradually falling because expanding markets and favourable business conditions paved the way for many new entrants and investment income was strong enough to increase smaller operators’ underwriting capacity. The...purchase to read more.

    Additional Insights for the General Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the General Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Business confidence index in the General Insurance industry impact industry performance..

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    What's in this report

    What is the General Insurance Industry?

    Businesses in this industry underwrite insurance policies relating to property, casualty, liability and other general risks. The premiums they earn from this are then invested to generate additional income. Underwriting life and disability is a separate industry, although many firms compete in both insurance markets.

    Industry Products
  • Motor insurance
  • General liability insurance
  • Legal insurance
  • Property insurance
  • Marine, aviation and transport insurance
  • Accident and health insurance
  • Industry Activities
  • Providing motor vehicle insurance, including compulsory third-party insurance
  • Providing householder insurance
  • Providing fire and industrial special risk insurance
  • Providing travel insurance
  • Providing mortgage and consumer credit insurance
  • Providing employers' liability insurance
  • Providing professional indemnity insurance
  • Providing public and product liability insurance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Business confidence index
  • Damage caused by natural disasters
  • Number of households
  • Total number of registered motor vehicles
  • year bond rate
  • FTSE 100

  • Current Performance
  • Low-risk investment approach
  • Referendum effects
  • Efficiency improvements
  • Regulation changes
  • Supervisory framework
  • Profit pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Supporting expansion
  • Risk of rain
  • Consolidation activity
  • Table: General Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - General Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining and Quarrying
  • Wholesale and Retail Trade
  • Transportation and Storage
  • Financial and Insurance Activities
  • Human Health and Social Work Activities
  • Consumers

  • Key Selling Industries
  • Insurance Agents & Brokers
  • Reinsurance

  • Products & Services
  • Motor insurance
  • Property insurance
  • Other
  • Marine, aviation and transport insurance
  • General liability insurance
  • Accident and health insurance
  • Legal insurance
  • Chart: General Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private clients
  • Commercial clients
  • Chart: Major Market Segmentation for the General Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitClaimsCommissions and wagesUnderwriting expensesReinsuranceOther
  • Chart: Cost Structure Benchmarking – Sector vs General Insurance

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Insurance Industry

  • Industry Globalization
    Aviva plc, Direct Line Insurance Group plc, RSA Insurance Group plc, AXA UK plc,
  • Table: Aviva plc - financial performance
  • Table: Direct Line Insurance Group plc - financial performance
  • Table: RSA Insurance Group plc - financial performance
  • Table: AXA UK plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the General Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the General Insurance Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity
  • The maximum amount of insurance a company or market can underwrite based on its financial strength.
  • Cessation Ratio
  • The proportion of insurance that an insurer cedes, or passes on, to a reinsurer.
  • Combined Ratio
  • A measure of underwriting performance, which equals the sum of the loss and expense ratios. A combined ratio above 100% indicates an underwriting loss.
  • Ebit
  • Earnings before interest and tax.
  • Solvency Margin
  • An insurer’s assets free of foreseeable liabilities and other comparable commitments.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s General Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on General Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The General Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on General Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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