Your Cart Is Empty!
The commercial motor parc has continued to increase in 2015 with LGVs and company cars driving the majority of growth. However, with the UKs vote to leave the EU it is expected that growth of the motor parc will slow as businesses have less confidence and money to invest in new commercial vehicles until the economy begins to recover. While reforms will provide instant benefits upon implementation, telematics and driverless technology will help to reduce the frequency and severity of claims in the longer term.
- GWP for the commercial motor insurance market grew by 1.0% to Pound3.99bn in 2015.
- The COR rose by 1.6pp to 99.9% in 2015 but was strengthened by Pound101.9m in reserve releases.
- The commercial motor parc enjoyed another year of growth. In 2015 the total commercial motor parc grew by 3.8% to 7.6 million vehicles.
- The claims environment has begun to stabilize with some insurers reporting slight increases since the market has adjusted to LASPO.
Verdict Financials UK Commercial Motor Insurance: Market Dynamics and Opportunities report provides an in-depth analysis of the UK commercial motor insurance market. It looks at market size and performance ratios as well as changes in premiums, claims, road casualties, regulations, and opportunities. It provides a thorough overview of the market along with future forecasts.
Reasons To Buy
- Benchmark yourself against the rest of the market. Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Be prepared for how regulation will impact the commercial motor insurance market over the next few years.
Table of Contents
Future growth will be dependent on new reforms and economic growth
Critical success factors
Commercial motor GWP grew slightly in 2015
The total motor insurance market grew by 3.3% in 2015
The commercial motor insurance market grew by 1.0% to Pound3.99bn in 2015
Commercial fleet dominates the market and is the driver of GWP growth
Fleet insurance is gaining share of the commercial motor insurance market
Lloyds of London accounts for 9.7% of the commercial motor market
Commercial motor COR is below 100% but has been strengthened by reserve releases
The COR for commercial motor insurance remained just below 100% in 2015
Fluctuations in the loss ratio as a result of LASPO have influenced the COR over recent years
Without reserve releases the COR would have risen above 100% in 2015
Commercial motor insurance premiums remained flat over 2015
Market competition prevented premiums from rising in 2015
Fluctuations in commercial premiums are softer compared to private motor
Premium rates will have to increase if the market is to remain profitable
Claims are beginning to stabilize
LASPO initially benefitted the commercial motor insurance market
The ABI reports a rise in the number of commercial claims notified in 2015
Whiplash claims account for up to 80% of motor personal injury claims numbers
Fraud remains a significant issue in the commercial motor insurance market
The number of road traffic accident casualties will continue to fall
The number of car, motorcycle, and pedestrian RTA casualties is falling
Larger commercial vehicles are colliding with pedal cyclists
The UK commercial motor parc has continued to grow
The commercial motor parc has grown in line with a strengthening UK economy
Growth has come from LGVs and company cars
The number of newly licensed commercial vehicles rose in 2015
The majority of commercial vehicles are licensed in the South East
Road usage reached a five-year high as a result of a growing motor parc and cheaper fuel
THE MARKET GOING FORWARD
Growth of the commercial motor market will depend on rate increases
The future of the commercial motor insurance market is uncertain
The dynamics of growth for the commercial motor insurance market will shift in 2017
The economy will dictate growth of the commercial motor parc
Rates may rise in response to claims inflation but may then fall due to new government reforms
IPT will rise to 10% in October 2016
The government is making a second attempt at reforms with new legislation
The benefits of LASPO did not fully materialize
Government reforms are estimated to save motor insurers Pound1bn a year
The personal injury small claims track limit is proposed to increase from Pound1,000 to Pound5,000
The government proposes to end cash compensation for minor soft-tissue injuries
MedCo will strengthen as initial reports find MROs playing the system
New regulation seeks to tackle nuisance calls as a result of the failed referral fee ban
Regulation of CMCs will be passed from the Ministry of Justice to the FCA
The success of reforms will be dependent on how the market responds
Telematics and driverless cars will reduce claims costs in the longer term
Telematics and safety features are already popular in the commercial market
Telematics and connected vehicles have business benefits outside of insurance
Larger commercial vehicles will see the greatest benefit from safety features
Telematics policies are predicted to reach an "opt-out" model for cars by 2025
The government has announced a new bill to support the development of driverless cars
Connected vehicles will uncover exaggerated and fraudulent claims
Abbreviations and acronyms
Primary and secondary research
About Verdict Financial
List of Tables
Table 1: UK motor insurance market GWP (Poundm), 2011-15
Table 2: Commercial motor insurance market GWP (Poundm), 2011-15
Table 3: Commercial motor insurance GWP by line (Poundm), 2011-15
Table 4: Share of commercial motor insurance GWP by line (%), 2011-15
Table 5: Commercial motor insurance reported-year COR (%), 2011-15
Table 6: Commercial motor insurance loss ratio and expense ratios (%), 2011-15
Table 7: Reserve development (Poundm) and COR (%), 2011-15
Table 8: Gross claims paid and incurred (Poundm), 2011-15
Table 9: Exposure, total number of claims notified, and claims frequency (%), 2011-15
Table 10: Number of motor personal injury claims recorded and settled, 2010-16
Table 11: The severity of RTA casualties in Great Britain (000s), 2005-14
Table 12: RTA casualties in Great Britain by road user type, 2005-14
Table 13: Total number of licensed commercial vehicles and GDP, 2011-15
Table 14: Licensed vehicles by body type (000s), 2011-15
Table 15: New commercial vehicle registrations by body type (000s), 2011-15
Table 16: Share of licensed commercial vehicles in Great Britain by region (%), 2015
Table 17: Road traffic (billion vehicle miles) and average petrol price (pence per liter), 2011-15
Table 18: Road traffic usage by vehicle type (billion vehicle miles), 2011-15
Table 20: Forecast of commercial motor insurance market GWP (Poundm), 2011-20f
Table 20: Forecasted annual GDP percentage growth (%), 2011-15
List of Figures
Figure 1: The private and commercial motor insurance markets are in growth year-on-year
Figure 2: Growth of the commercial motor market has been facilitated by economic growth
Figure 3: Commercial fleet is growing, while non-fleet is falling in GWP
Figure 4: Fleet insurance held 59.1% of the commercial motor insurance market in 2015
Figure 5: Commercial motor COR rose by 1.6pp but remained below 100% in 2015
Figure 6: The loss ratio has increased by 1.2pp as a result of stabilizing claims since LASPO
Figure 7: Reserve releases increased over five-fold in 2015
Figure 8: The annual rate of decline of gross claims incurred is slowing
Figure 9: The ABI has reported the total number of claims to have risen to above 2013 levels
Figure 10: Claims recorded increased for the first time since 2011-12
Figure 11: The number of RTA casualties has been in long-term decline
Figure 12: A reduction in RTA car occupant casualties is driving the fall in total casualties
Figure 13: The number of licensed commercial vehicles has increased with economic growth
Figure 14: Company cars and LGVs have fueled the expansion of the UK commercial motor parc
Figure 15: Company cars and LGVs account for the majority of new commercial vehicle registrations
Figure 16: The South East has the largest share of licensed commercial vehicles
Figure 17: Road traffic usage has risen as fuel prices have fallen
Figure 18: The future of the commercial motor insurance market is uncertain
Figure 19: Economic growth will slow in 2017 following Brexit but will then begin to recover
Following are different modes of Licenses.
This license allows only one person to use the report. This person can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people. Unless you purchase a Site License or a Global Site License, a Single User License must be purchased for every single person that wishes to use the report within the same enterprise.
This license allows unlimited users to use the report within one company location, e.g. a regional office. These users can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people.
A Global Site License (or Enterprise wide Site License or Global License) is a license granted to original purchaser, who can share a report with other employees and authorized Users of the same organization.
The delivery of reports is depends on format & mode of license of report(s). Following are different kinds of formats of report(s) and their delivery options :
Report will be sent to your username email address in PDF, Excel, PowerPoint or any other electronic / softcopy format by publisher.
Delivery Time: 12 to 48 hours [depending on time difference or occurrences of national holidays]
Report will be sent through mail / courier delivery to your shipping address by publisher.
Delivery Time: Less than, few weeks [depending on time difference or occurrences of national holidays]
2. How can I make payment for publications I purchase?
You could be able to make the payment, in following ways:
b. Transfer of fund to our bank account via Bank transfer or Wire transfer
c. Payment via DD or Cheque
3. Is it safe to use my credit card on MarketinfoResearch?
Your personal information and online tranaction on Marketinfo Research is secure, private, and tamper-proof. All credit card payments are processed through secure and trusted payment gateways.