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 Analysis Chapter
Difficult conditions have affected the industry over the past five years, including household spending pressures and the low number of new homes coming on to the market, which limited demand for insurance. However, investment income generally grew, despite year-on-year volatility, which supported the industry. The growing number of rented properties over the past five years and an increase in premium prices during the latter part of the period also mitigated adverse conditions to some extent. Industry revenue is estimated to decrease at a compound annual rate of 0.5% over the five years through 2016-17 to £10.3 billion. Premium and investment income are estimated to account for approximately 85.5% and 14.5% of industry revenue respectively in 2016-17.
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