Industry Analysis & Industry Trends
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 2016-17. There are many different types of classic car insurance policies, including comprehensive cover, laid-up cover, and third-party, fire and theft cover. The level of risk and the premium prices vary considerably, depending on the type of policy.
The industry has endured challenging conditions over the past five years. In the early part of the five-year period through 2016-17, consumer confidence and real disposable income declined... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital factors of production using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, and therefore high capital intensity. Conversely, comparatively high wage costs suggest high labour intensity.
The industry has a medium level of capital intensity with an estimated to capital-to-labour ratio of 1:3.91 in 2016-17. This indicates that for every pound industry operators spend on capital, they spend £3.91 on labour. Information technology is an important component of insurers' operations and, consequently, accounts for a sizeable portion of their capital investment programmes. IT .. purchase to read more