United Kingdom (UK) Commercial Motor Insurance Market Dynamics, Competitor Landscape, Growth Opportunities and Forecast, 2022-2026

United Kingdom (UK) Commercial Motor Insurance Market Dynamics

The gross written premium (GWP) in the UK commercial motor insurance market was valued at GBP5.5 billion in 2021 and is expected to grow at a CAGR of more than 2% during 2021-2026. The growth in gross written premiums (GWP) in the UK commercial motor insurance market was driven by an increase in the number of light goods vehicles (LGVs) on the road in 2021, as COVID-related lockdowns and behaviors established during the pandemic drove demand for home deliveries.

The UK commercial motor insurance market research report will help to understand how COVID-19 and other factors have affected commercial motor insurance. The report will also help to determine how the market leaders have maintained their position and evolved their product offerings in the past year.

UK Commercial Motor Insurance Market Outlook 2021-2026 (GBP Billion)

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UK Commercial Motor Insurance Market Dynamics

In the first half of 2021, nation-wide lockdowns in several countries and other COVID-19 pandemic related restrictions led to a significant reduction in mobility and the number of vehicles on the road compared with pre-pandemic times. Also, the average cost of maintenance and repairs increased throughout 2021, as supply chain issues made it increasingly difficult for manufacturers to acquire spare parts (particularly semiconductors), which are becoming more prevalent in vehicles as technology improves.

A lasting effect of the COVID-19 pandemic is the e-commerce boom and greater demand for home deliveries. As a result of the increased demand for these services, cargo vehicles became more and more packed, which drove up the cost of insurance for items in transit. Simply put, a van or truck carrying more cargo will have to pay a higher insurance premium to protect its now more expensive cargo from theft or accident loss.

UK Commercial Motor Insurance Market – Growth Opportunities

As more expensive technologies become common in commercial vehicles, insurers will face increased claims costs. These rising costs will drive higher premiums – increasing GWP. However, in the long run, as EV technologies and adoption increase in the UK market, an increasing number of suppliers will look to manufacture the parts required for these repairs. As the market shifts from ICE vehicles to EVs, mechanics will be retrained to service the latter rather than the former. These factors will contribute to reducing repair costs over time and thus reducing premiums.

With the emergence of EVs, connected cars, autonomous vehicles, and transportation-as-a-service, the motor industry is undergoing unprecedented systemic change. Insurers must be ready to act upon these changes as they start to play even more prominent roles in the industry and wider society. Client-oriented, data-driven, and usage-based policies are becoming increasingly popular among fleet owners, providing another opportunity for insurers to grow or consolidate in the market.

UK Commercial Motor Insurance Market – Competitive Landscape

The key players in the UK commercial motor insurance market are Aviva, RSA Insurance, Allianz, Admiral, AXA, NFU Mutual, Zurich Insurance, QBE Insurance, Direct Line Group, and Haven Insurance. Aviva led the UK commercial motor insurance market in 2021.

UK Commercial Motor Insurance Market Analysis, by Key Players

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UK Commercial Motor Insurance Market Report Overview

Key Highlights

• The commercial motor insurance market grew in 2021, reaching GBP5.5 billion in GWP.
• The total number of commercial vehicles on UK roads increased in 2021.
• The number of claims recorded fell in 2021, despite the increased number of vehicles on UK roads.
• Aviva remains the market leader.

Reasons to Buy

• Understand how COVID-19 and other factors have affected commercial motor insurance.

• Determine how the market leaders have maintained their position and evolved their product offerings in the past year.

• Understand the effects of the cost-of-living crisis.

• Ascertain how newcomers and insurtechs are disrupting and driving innovation.

• Identify areas for growth and development in the market going forward.

• Recognize the short-term and long-term challenges facing commercial motor insurers.