UK Commercial Property Insurance Market 2017

1
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017byTimetric

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2
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017

• Gross written premiums in the commercial property
  insurance category recorded sustained growth
  throughout the review period (20082012), rising
  at a compound annual growth rate (CAGR) of 6.79.
  Premiums increased at an annual rate of 6.8 in
  2012, reaching a total of GBP6.72 billion the
  highest level in five years.
• Commercial property insurance claims paid
  declined by 5.5 in 2012, but this belies the
  rapid growth recorded since 2008. Payouts rose at
  a CAGR of 57.29 over the five years to 2012,
  while claims incurred increased at a CAGR of
  28.61 during the same period. The UK has
  experienced frequent flooding since 2000,
  including two of the wettest years on record
  since 2008.
• Despite weakness in the commercial construction
  market and flagging business sentiment due to
  poor economic conditions, the rise in premiums
  was driven by high claims related to severe
  weather and instances of civil unrest. Tentative
  economic recovery and improving business
  conditions drove growth towards the end of the
  review period.
• A large claims burden, limited investment returns
  due to the UKs low interest rate environment,
  and rising expenses have hindered the
  profitability of insurers in the category. A
  combined operating ratio of 111.8 was registered
  in 2012. Although it exceeds the 100 breakeven
  threshold, it marks an improvement on
  profitability levels recorded during 2008-2010.

3
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017

• Following the expiry of the Statement of
  Principles in June 2013, Flood Re was established
  by the government and the insurance industry.
  Unlike its predecessor, Flood Re excludes small
  businesses from guaranteed flood insurance at
  affordable prices, and will result in upward
  pressure on costs and premiums for insurers and
  their commercial customers.
• Despite downside forces, growth in commercial
  property gross written premiums will prevail over
  the forecast period (20132017) as the economic
  recovery gains traction, business confidence
  improves and commercial construction activity
  increases. Premiums are expected to rise to
  GBP8.22 billion in 2017, representative of a CAGR
  of 4.34 over the five years from 2013.
• Complete report available _at_ http//www.rnrmarketre
  search.com/commercial-property-insurance-in-the-uk
  -key-trends-and-opportunities-to-2017-market-repor
  t.html .

4
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017

• Scope
• This report provides market analysis, information
  and insights into the UK commercial property
  insurance business
• It provides a global snapshot of market size
• It analyses drivers and the outlook for the
  market
• It provides information on distribution channels
• It covers deals, news and regulatory developments
• Reasons To Buy
• Gain an understanding of the UK commercial
  property insurance market size
• Learn about the performance of market drivers and
  distribution channels
• Understand the competitive landscape in terms of
  performance, profitability and product innovation
• Find out more on key deals and recent
  developments in the market

5
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017

• Key Highlights
• Premium growth was maintained in 2012
• Commercial property insurance payouts have surged
• High claims led insurers to raise rates
• Profitability has been elusive
• Insurers will face headwinds following
  legislative changes
• Moderate growth in gross written premiums is
  expected
• Complete report available _at_ http//www.rnrmarketre
  search.com/commercial-property-insurance-in-the-uk
  -key-trends-and-opportunities-to-2017-market-repor
  t.html .

6
Commercial Property Insurance in the UK Key
Trends and Opportunities to 2017

• For more details contact Mr. Priyank Tiwari
  sales_at_rnrmarketresearch.com / 18883915441

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