12 Aug 2020
Posted in Insurance
Fidelis Underwriting may have advantage over other insurers in UK sector, which risks drop in profitability due to huge reliance on life products, says GlobalData
The leading UK insurers are heavily reliant on the life sector, even compared to other European countries that have strong life leanings. Of the top ten companies, only Fidelis Underwriting was non-life, which could put it at a strong position, according to GlobalData, a leading data and analytics company.
Nine of the leading ten insurers in the UK are almost exclusively involved in the life insurance segment (one is 99%). In comparison, only five out of ten are focused on life insurance in Germany, and nine out of ten in Denmark have at least 90% of GWP in life insurance. Similarly, two of the top ten in France had the majority of their GWP in non-life.
Deblina Mitra, Insurance Analyst at GlobalData, comments: “A rise in life insurance claims due to COVID-19 will affect insurers that are heavily reliant on life products. Legal and General Assurance appears most susceptible with 21.5% of its products being life insurance.”
Ben Carey-Evans, Insurance Analyst at GlobalData comments: “Fidelis Underwriting is in a relatively strong position, in terms of its share in the market. Non-life is certainly not without risk, and business interruption products are particularly very vulnerable to large claims increases, but the company’s key lines such as property and motor are likely to only see a short-term decline in claims.
“On the commercial side, fewer people will be in offices, while fewer cars will be on the road during the lockdown period. The risk may come later on for those product lines, if companies decide staff working from home is a viable option and consumers start using cars less, the renewals of these policies may decline.”
Want to find out more? Send your questions to Rebecca Panks, PR Executive at GlobalData (firstname.lastname@example.org)