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Home Insurance in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Home Insurance Market Research Report | SIC UK0.021 | Oct 2016

Property protecting: New homes and more renters to improve demand in tough conditions

IBISWorld’s Home Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Aviva plc Aviva plc market share
AXA Insurance AXA Insurance market share
Direct Line Group Ltd Direct Line Group Ltd market share
Lloyds Banking Group Lloyds Banking Group market share
RSA Insurance Group RSA Insurance Group market share
Industry Statistics & Market Size
Revenue
£10bn
Annual Growth 12-17
-0.5%
Annual Growth 17-22
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Profit
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Employment
21,968
Businesses
432
Industry Threats & Opportunities
  • A surge in the number renters has increased demand for insurance from landlords
  • Increasingly frequent natural disasters and burglaries have negatively affected profit
  • Government initiatives to tackle the housing shortage should support demand
  • ... purchase to read more

Industry Analysis & Industry Trends

Home insurance is an important segment of the General Insurance industry (IBISWorld report K65.120) in the United Kingdom, accounting for the second-largest share of premium income, behind only motor insurance. The industry generates income from two key sources: premium income and investment income. Premium income refers to net premium income.

The industry has been affected by poor conditions over the past five years. Household spending pressures and the low number of new properties coming on to the market decreased demand for home insurance. However, investment income grew, despite considerable volatility, and mitigated the fall in revenue. A surge in the number of people renting properties also increased demand for insurance from landlords... 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 exhibits a medium level of capital intensity with an estimated capital to labour ratio of 1:7.13 in 2016-17. This indicates that for every £1.00 spent on capital, £7.13 will be spent 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

Additional Insights for the Home Insurance Industry

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

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as year bond rate and Damage caused by natural disasters in the Home Insurance industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Home Insurance Industry?

    Companies in this industry underwrite home insurance policies. This means they assume the risk for the insurance and decide the appropriate premium. These policies protect against loss of or damage to property and contents due to theft, fire and other causes.

    Industry Products
    Property insuranceContents insuranceCombined property and contentsSpecialist insurance
     
    Industry Activities
    Insuring propertyInsuring contentsProviding specialty property and contents insurance


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • year bond rate
  • Damage caused by natural disasters
  • FTSE 100
  • Number of households
  • Real household disposable income
  • Current Performance
  • Bleak conditions
  • Rental properties to the rescue
  • Income from investments
  • Margins fall
  • Chart: Revenue Growth
  • Industry Outlook
  • Premium and investment income trends
  • Regulatory environment
  • Margins improve
  • Table: Home Insurance Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Insurance Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Insurance Agents & Brokers
  • Reinsurance
  • Products & Services
  • Combined property and contents
  • Property insurance
  • Contents insurance
  • Specialist insurance
  • Chart: Home Insurance Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • People aged between 30 and 49
  • People aged between 50 and 64
  • People aged between 65 and 74
  • People aged under 30
  • People aged 75 and over
  • Chart: Major Market Segmentation for the Home Insurance Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Claims
  • Commissions and wages
  • Underwriting expenses
  • Other
  • Reinsurance
  • Chart: Cost Structure Benchmarking – Sector vs Home Insurance
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Insurance Industry
  • Industry Globalization
    Major Companies
    Direct Line Insurance Group plc
    Aviva plc
    Lloyds Banking Group plc
    AXA UK plc
    RSA Insurance Group plc
  • Table: Direct Line Insurance Group plc - financial performance
  • Table: Aviva plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance
  • Table: AXA UK plc - financial performance
  • Table: RSA Insurance Group plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Home Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Home Insurance Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Capacity
  • The maximum amount of insurance a company can underwrite based on its financial strength.
  • Cessation Ratio
  • The proportion of insurance that an insurer cedes, or passes on, to a reinsurer.
  • Net Premium Income
  • The sum of premium income earned by an insurance company, less premiums ceded to reinsurance companies, plus any reinsurance assumed.

  • Why Buy this Report?
    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 Home 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 of 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 Home 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 Home Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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