Executive Summary
Premiums increased in 2010 but challenges remain in the commercial motor marketplace
GWP in the commercial motor marketplace experienced a marked increase for the first time since 2008
Commercial motor parc continues to decrease
In 2010 the number of commercial vehicles decreased across all classes except "other vehicles"
Average claims costs began to fall in 2010
The average claims cost decreased by 6.8% in 2010
Both the number and the cost of claims rose in 2010
Telematics provide the opportunity to reduce the cost of claims
Distribution channels are expected to have stayed fairly constant in 2010
Brokers dominate distribution in the UK commercial market, with an 82% market share in terms of GWP
The top 10 insurers have grown their share of the commercial insurance marketplace
GWP will increase in 2011 as the market continues its drive towards profitability
Rate increases are expected to continue increasing GWP in 2011
Insurers are only forecast to return to profitability by 2013
A combination of premium increases and cost-cutting measures will improve combined operating ratios going forward
OVERVIEW
Catalyst
Summary
MARKET CONTEXT
Introduction
Premiums increased in 2010 but challenges remain in the commercial motor marketplace
GWP in the commercial motor marketplace experienced a marked increase for the first time since 2008
The combined operating ratio in the commercial motor marketplace increased in 2010, despite a rise in premiums
The loss ratio continues to be the main driver of the increasing COR
Insurers have begun to rebuild reserve developments after a large decrease in 2009
Commercial motor parc continues to decrease
In 2010 the number of commercial vehicles decreased across all classes except "other vehicles"
Average claims costs began to fall in 2010
The average claims cost decreased by 6.8% in 2010
Both the number and the cost of claims rose in 2010
Accidental damage claims have the highest claimant success rate
The number of road traffic accidents reported in the UK continues to fall
The number of serious injuries and deaths due to RTAs continues to decrease
Telematics provides opportunity to reduce the cost of claims
DISTRIBUTION DYNAMICS
Introduction
SME commercial vehicle cover lends itself to online distribution
Distribution channels are expected to have stayed fairly constant in 2010
Brokers dominate distribution in the UK commercial market, with 82% market share by GWP
The proportion of policies written directly to insurers is expected to have increased by 1%
Banks and building societies have only generated a small proportion of commercial insurance GWP
Despite changes in technology, face-to-face brokerage is the most popular form of commercial insurance arrangement
Nearly three quarters of SMEs arrange their commercial insurance via a broker
Less than a quarter of commercial insurance policies are arranged through the Internet or by post
Medium-sized enterprises are the least likely to stay with their provider for more than 10 years
Over a third of SMEs consider ongoing advice from their insurers to be "very important"
SMEs that arranged their commercial insurance through the broker channel were most likely to deem ongoing insurance advice as "not important"
Half of SMEs that arranged their commercial insurance by post found it "very important" to receive ongoing advice from their insurer
Micro SMEs are the most concerned about price but the least concerned about service
An increasing proportion of SMEs are open to telephone or online policy arrangement
Call center-based insurance providers need to stress the convenience benefits they can offer
Micro SMEs are more likely than medium firms to arrange commercial insurance over the telephone
SMEs are attracted to the convenience of online commercial insurance arrangements
Nearly two fifths of micro SMEs would arrange their insurance online
The majority of SMEs that would not use the telephone or Internet retain the desire to arrange insurance face-to-face
Three quarters of medium-sized companies would not purchase insurance over the telephone
A clear majority of SMEs would prefer not to use the telephone to arrange insurance
Insurers might find it easier to persuade SMEs to arrange their cover over the Internet rather than on the telephone
Medium-sized enterprises were the most likely to reject the online arrangement platform in favor of the face-to-face method
Almost two thirds of SMEs would arrange their cover online or via the telephone
31.3% of all SMEs interviewed stated that they would purchase motor insurance online
Micro SMEs are most willing to arrange motor insurance online
COMPETITOR FOCUS
Introduction
The top 10 insurers have grown their share of the commercial motor insurance marketplace
Aviva and RSA both managed 10% rate increases in 2010
Aviva increased its GWP by 29.3% in 2010
RSA managed a 10% rate increase in commercial motor insurance
Allianz aims at increasing commercial motor rates
QBE calls for further rate increases in the commercial motor place
Aviva has become the largest fleet insurer in the UK
Zurich experienced a 12% decrease in GWP in 2010
NFU Mutual grew GWP by 0.5% in 2010
AXA grew commercial motor insurance GWP by 9.9% in 2010
LV= gained a 1.2 percentage point increase in market share in 2010
RBS suffered the largest relative decrease in GWP in 2010
The top 11–20 insurers control a 9% market share
The top 11–20 insurers lost 0.4% of their market share in 2010
RBS has the highest COR among the top insurers
RBS's COR is 27.3% above the market average
FUTURE DECODED
Introduction
GWP will increase to £5bn in 2015 as the market continues its drive towards profitability
Rate increases are expected to continue increasing GWP in 2011
Insurers are only forecast to return to profitability by 2013
A combination of premium increases and cost-cutting measures will improve combined operating ratios going forward
APPENDIX
Definitions
ABI members
Accident year combined ratio
Bancassurers
Brokers
Brandassurers
Channel
Direct insurer/writer
Earned premiums
Gross premium
Net premium
Platform
Reported year combined ratio
Reserve development
Written premiums
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
[Inhaltsverzeichnis ausblenden]
