United Kingdom (UK) SME Insurance Market Size, Trends, Competitor Dynamics and Opportunities
UK SME Insurance Market Report Overview
The last three years have been challenging for SMEs. The number of businesses fell sharply in 2020, and the decline continued, albeit at a slower pace, in 2021. By the start of 2022, the SME business population was smaller than it was in 2017. However, there are some bright spots. These include the growth of the small business segment over the last year, which lies in contrast to the hit taken by micro-entities and sole traders. From an insurance perspective, the uptake of insurance also appears to have rebounded having declined during the pandemic.
The UK SME insurance market research report identifies which insurers lead the way in the SME segment and examines how they are developing their propositions, while also highlighting how competitor positions vary between micro, small, and medium enterprises. Moreover, it reveals which insurers are winning over brokers and with which companies SMEs are placing their business.
UK SME Insurance Market Dynamics
Though insurance uptake among SMEs has recovered since the pandemic, the current economic challenges mean that SMEs are looking for cost savings, which could include insurance. As the recession is expected to last a long time, insurers must engage with their customers now more than ever to understand their challenges and what this means for their insurance coverage. Taking a proactive approach and conducting mid-term reviews with key clients rather than waiting for renewals is one of the possible options.
UK SME Insurance Market Segmentation by Channels
The key channels in the UK SME insurance market are brokers, banks, PCW, and direct channels. Most of the SME insurance policies were sold through brokers in 2022.
In both the packaged and non-packaged markets, Aviva is the number-one player for brokers. The insurer attributes its strong broker performance in large part to its strong digital offering. In 2018, it launched its digital Broker Community, which attracted a greater number of brokers to its platform by offering live chat features, Fast Trade (Aviva’s e-trading and extranet platform), personal e-services, e-document sections, and guaranteed same-day responses. Most recently, the insurer is allowing brokers to place larger combined risks digitally as well as process routine mid-term adjustments.
UK SME Insurance Market Analysis by Channels, 2022 (%)
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UK SME Insurance Market – Competitive Landscape
The leading providers in the UK SME insurance market are AXA, Aviva, Zurich, NFU Mutual, and Barclays. AXA sold the highest number of contracts in 2022 and was followed by Aviva and Zurich.
AXA: The provider revamped its intermediated SME business and created a dedicated 120-strong team to focus on the SME segment. As part of this revamp, it now offers brokers the chance to place policies online with a self-service option or to work with its team of underwriters where more bespoke solutions are required.
Aviva: Throughout 2022, Aviva has made several announcements related to its SME business. It has also expanded its underwriting capabilities into new areas, notably the high-net-worth (HNW) space, through its acquisitions of AXA XL’s private client business in 2021 and Azur Underwriting. The insurer believes these capabilities will also help in the SME space, with many HNW individuals also being business owners.
Zurich: Zurich appointed Will Edwards as its new head of SME in 2022 and announced its continued intention to drive the growth of Zurich Retail. Within the SME space, Zurich performs particularly well with medium-sized businesses, where it leads the market for nine out of 16 product lines. It also fares well in the small business segment but has a comparatively limited presence in the sole trader and micro-business segments.
UK SME Insurance Market Analysis by Providers, 2022 (%)
To know more about the leading providers in the UK SME insurance market, download a free report sample
UK SME Insurance Market Report Overview
| Key Channels | Brokers, Banks, PCW, and Direct |
| Leading Providers | AXA, Aviva, Zurich, NFU Mutual, and Barclays |
Segments Covered in the Report
UK SME Insurance Channels Outlook (2018-2022)
- Brokers
- Banks
- PCW
- Direct
Reasons to Buy
- Identify UK SME insurance market leaders.
- Learn the providers of choice for SME insurance among brokers.
- Discover the strategies and Net Promoter Scores of the top SME insurers.
- Identify growth opportunities in the SME space
- Find out which value-added services are in demand.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The key channels in the UK SME insurance market are brokers, banks, PCW, and direct channels.
Most of the SME insurance policies were sold through brokers in 2022.
The leading providers in the UK SME insurance market are AXA, Aviva, Zurich, NFU Mutual, and Barclays.
AXA sold the highest number of contracts in the UK SME insurance market in 2022.
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