UK Commercial Property Insurance: Market Dynamics and Opportunities 2025

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This report analyzes the UK commercial property insurance market, looking at drivers of uptake across different demographics and dwelling types. It discusses the claims landscape in 2024, the commercial property market across London, and relevant regulatory changes. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs operating within this space. Future impactors in the market are also examined, including climate change, sustainability, underinsurance, and the changing office environment.

GlobalData estimates that UK commercial property insurance gross written premium (GWP) rose by 8% in 2025, reaching GBP15.68 billion. This growth was largely fueled by higher repair and rebuild costs, as well as continued rate hardening across the market. In 2024, GWP rose by 7.8% to GBP14.52 billion, reflecting elevated premium levels amid persistent inflation and ongoing supply chain bottlenecks that drove up construction and reinstatement expenses. While overall claims notifications fell by 6.7% in 2024, weather-related claims bucked this trend, rising by 21.5%.

Scope

Gross claims incurred fell by 7.93% in 2024, driven by a significant 24.19% decrease in business interruption claims.

The 6.7% drop in claims notified was driven by a 32.1% fall in commercial subsidence claims.

Aviva is the market leader, accounting for a 10.8% share of GWP in 2024.

Reasons to Buy

Analyze drivers of growth within the UK commercial property insurance market.

Determine areas of concern for insurers and the wider market, including in the claims landscape.

Recognize the impact of inflation and the cost-of-living crisis on the market.

Discover the market shares held by leading commercial property insurance players.

Examine future opportunities and challenges within the market.

Aviva
AIG
Zurich
AXA
Allianz
Munich Re
Intact Insurance (RSA)
Chubb
NFU Mutual
Direct Line
Knight Frank
QBE
HDI Group
Evoque Group
Ventis
Monteith
FUW Insurance
Verisk
Aurora
J.P. Morgan
Amazon
PwC
BNP Paribas

Table of Contents

Table of Contents

1. Executive Summary

2. Market Dynamics

3. Competitor Dynamics

4. The Market Going Forward

5. Appendix

Table

Table 1: UK commercial property insurance market GWP and growth rate, 2018–22

Table 2: Gross claims paid (GBP million), by type, 2018–22

Table 3: Number of claims notified (000s), by type, 2018–22

Table 4: UK commercial construction output, 2022–27f

Table 5: Construction output, non-seasonally adjusted, current prices by sector (GBP billion), 2018–22

Table 6: Competitor market shares and GWP, 2020–22

Figures

Figure 1: The UK commercial property insurance market grew by 18.5% in 2022

Figure 2: Overall gross claims paid decreased by 16.4% in 2022

Figure 3: Overall, the number of claims improved in 2022, falling by 5.8%

Figure 4: Commercial construction output is expected to maintain growth over the forecast period

Figure 5: Buy-to-let mortgages have started to tail off as high interest rates make lending harder

Figure 6: The population in the UK fell by 0.1% in 2021

Figure 7: Aviva maintains its position as the leader in the commercial property insurance market

Figure 8: GWP is forecasted to grow consistently until 2027, when it will reach GBP15.2 billion

Figure 9: Over half of UK SMEs are facing higher commercial property premiums for the same or less cover

Figure 10: UK SMEs that express concerns about underinsurance has reduced to 34.7% from 42.4% in 2023

Figure 11: 64.9% of SMEs find an insurer’s record in sustainability important or very important

Figure 12: Underwriting and risk profiling is the area of the value chain that will be most impacted by AI

Figure 13: Larger SMEs are more comfortable with using an AI-powered chatbot compared to those that are smaller

Figure 14: Roughly 60% of employees do not anticipate returning to full-time office work as of 2022

Figure 15: 79.7% of individuals expected to spend three or fewer days in the office in 2022

Figure 16: Forecasting methodology

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