Green bonds: Operators join forces to tackle climate change in the wake of natural events

Businesses in this industry underwrite general insurance policies relating to property, casualty, liability, motor vehicles and other general risks. The premiums they earn from these activities are then invested to generate additional income. The industry provides services to both private and commercial clients. Underwriting life and disability does not fall within this industry, although general health insurance does.Over the five years through 2019-20, industry revenue is expected to decline at a compound annual rate of 4.8%, although revenue is expected to rise by 1.6% in 2019-20, to £69.7 billion...read more.

Industry Statistics & Market Size
Revenue
£69.7bn
Annual Growth 15-20
-4.8%
Forecast Growth 20-25
Profit
Employment
70,196
Businesses
302

Industry Threats & Opportunities

  • Increasing regulation and tax rates have limited operators’ profitability over the past five years
  • A rise in reinsurance is likely to benefit industry operators in coming years
  • Household disposable income is set to rise, which should boost demand for industry products
  • 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 18.8% of industry-related net written insurance premiums in 2019-20. Aviva is the largest company, with a market share of 6.4%. Due to their size and financial positions, major players like Aviva and Direct Line have the capital to invest more heavily in directly distributing general lines, such as motor insurance cover.The competitive nature of general insurance has favoured companies that branch out horizontally or specialise in particular business segments. Pro...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 vehicle insurance
  • General liability insurance
  • Travel insurance
  • Property insurance
  • Marine, aviation and transport insurance
  • Accident and health insurance
  • Pet 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
  • Revenue washed away
  • Regulation environment
  • Profit pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Climate change
  • Consolidation slowdown
  • 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 vehicle insurance
  • Property insurance
  • Other
  • Accident and health insurance
  • General liability insurance
  • Marine, aviation and transport insurance
  • Pet insurance
  • Travel 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
    ProfitProfit, as measured by earnings before interest and tax (EBIT), varies depending on whether a firm is private or public and what its product specialities are. Historically, insurers would often incur an underwriting loss, but would offset this with strong investment gains. After the debt and equity market crashed in 2001, this practice was no longer successful, and underwriting became more disciplined. Over the past five years, the Solvency II framework and changes to the Ogden rate have added additional costs for insurance firms and put pressure on margins. This pressure is anticipated to be relieved somewhat by an increase in the Ogden rate during 2019. In the current year, EBIT is estimated to account for 10.9% of industry revenue. Escalating reinsurance costs are expected to constrain profit margin expansion over 2019-20. However, stronger investment returns are expected to support industry profitability to some extent. WagesMarketingRentUtilitiesThe costs of utilities are low and are expected to account for 1.1% of industry revenue. Utility costs are relatively similar between companies in the industry. Utility costs are expected to be primarily derived from electricity usage from office IT equipment. PurchasesDepreciationCommissionsClaims expensesUnderwriting 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Total Assets (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
    Cessation Ratio
  • The proportion of insurance that an insurer cedes, or passes on, to a reinsurer.
  • Ebit
  • Earnings before interest and tax.
  • Gilt
  • A gilt is a bond issued specifically by the UK government rather than a corporation.
  • Ogden Discount Rate
  • A rate used in court to determine compensation in personal injury cases.
  • Solvency Ii Framework
  • An EU legislative programme that introduced a harmonised insurance regulatory regime.
  • What Our Customers Say

    Why buy this report?

    The General 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
    • 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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