Changing gear: Industry demand is driven by investors' desire for a diverse portfolio

The Classic Car Insurance industry generates revenue from two main sources: premium income and investment income. Premium income is estimated to account for approximately 80% of industry revenue in 2019-20. There are many different types of classic car insurance policies, including comprehensive cover, laid-up cover, and third-party, fire and theft cover, with comprehensive cover being the most prevalent form. The level of risk and the premium prices vary considerably, depending on the type of policy. During the current year, revenue is forecast to rise by 0.5% to £657.5 million as the price of classic cars, and therefore classic car insurance, is expected to increase.The industry has endured challenging conditions over the past five years...read more.

Industry Statistics & Market Size
Revenue
£657.5m
Annual Growth 15-20
0.6%
Forecast Growth 20-25
Profit
Employment
1,321
Businesses
67

Industry Threats & Opportunities

  • Rising demand for classic cars is expected to support industry demand in the current year
  • Weak demand for lower-value classic cars has intensified competition between insurers
  • Pressure on personal finances may restrict demand by reducing purchases of classic cars
  • Industry Report - Industry Products Chapter

    Insurance companies base premiums on the policyholder's age, occupation and claims history. The age and value of a classic car also determines its premium. Insurers will also consider changes in value based on owner modifications, the number of miles the car has already travelled and how often it is driven.Comprehensive coverComprehensive cover is the main type of cover industry operators offer and is estimated to account for 61.2% of industry revenue. It is the highest level of cover available, offering protection against harm done to other people or their vehicles; the owner's vehicle being damaged, stolen or destroyed in a fire; medical expenses; accidental damage; and the cost of replacing a vehicle's contents. In ...purchase to read more.

    Additional Insights for the Classic Car Insurance Industry

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

  • Superior financial management and debt management
  • Possession of accurate information
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer confidence index in the Classic Car Insurance industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Classic Car Insurance Industry?

    Industry participants underwrite (i.e. assume the risk for and assign premiums to) classic car insurance policies. According to HMRC, any car that is over 15 years old and has a market value of at least £15,000 is a classic car, but insurers can vary in their definition. The level of risk assumed and the cost of an insurance premium vary according to the type of insurance policy being underwritten.

    Industry Products
  • Third party, fire and theft cover
  • Other policies
  • Comprehensive cover
  • Laid-up cover
  • Industry Activities
  • Providing comprehensive cover
  • Providing laid-up cover
  • Providing third party, fire and theft cover
  • Providing other types of insurance cover
  • 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
  • Consumer confidence index
  • FTSE 100
  • MSCI World Index
  • year bond rate

  • Current Performance
  • Investment grade
  • Premium prices
  • Revenue drag
  • Internal competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand shifts gear
  • European regulations
  • Margins widen
  • Table: Classic Car Insurance Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Insurance Agents & Brokers
  • Reinsurance

  • Products & Services
  • Comprehensive cover
  • Laid-up cover
  • Third party, fire and theft cover
  • Other policies
  • Chart: Classic Car Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 and over
  • Consumers aged between 31 and 54
  • Classic car clubs
  • Consumers aged between 17 and 30
  • Other
  • Chart: Major Market Segmentation for the Classic Car Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitClaims expensesUnderwriting expensesCommissionsCommissions, are expected to account for 9.8% of industry revenue in 2019-20. Commissions account for a larger share of revenue than wages because insurers use an extensive network of brokers and agents to sell their products and pay them on a commission basis. However, the share of revenue absorbed by commissions fell over the past five years, mainly due to growth in direct sales, principally through the internet.WagesMarketingRentRent costs are expected to account for a small proportion of industry revenue in 2019-20, at 1.3%. Rent costs may vary among industry operators depending on the location of their establishments. Those targeting classic car owners in cities are generally expected to face higher rent costs. PurchasesUtilitiesUtility costs are expected to be minimal. These will generally result from electricity use to keep computer related equipment running in offices. Utilities are expected to account for 1.1% of industry revenue in 2019-20. DepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Classic Car Insurance

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

  • Industry Globalization
    Aviva plc, Direct Line Insurance Group plc, Liverpool Victoria Insurance Company Limited,
  • Table: Aviva plc - financial performance
  • Table: Direct Line Insurance Group plc - financial performance
  • Table: Liverpool Victoria Insurance Company Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Classic Car 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 Classic Car Insurance Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Insurance Broker
  • An agent who sells insurance.
  • Net Written Premiums
  • The income an insurer gets from premiums after reinsurance charges have been deducted.
  • Premium
  • The amount a customer pays for an insurance policy.
  • What Our Customers Say

    Why buy this report?

    The Classic Car Insurance market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    • Quickly build competitive intelligence
    This report on Classic Car 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 Classic Car 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 Classic Car Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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