United Kingdom (UK) SME Insurance Market Dynamics, Challenges, Growth Opportunities and Forecast, 2022-2026

Figure 1: Most UK private enterprises are SMEs, but they only account for just over half of turnover

Figure 2: Company liquidations rose again in 2022

Figure 3: Three of the 16 industries account for more than half of SME revenue

Figure 4: Over three quarters of SMEs are concerned about the cost-of-living crisis

Figure 5: Only one in five employees anticipate being in the office for more than three days a week

Figure 6: Since the COVID-19 pandemic began, the UK’s GDP has experienced significant fluctuations

Figure 7: In April 2020, the number of people receiving Universal Credit significantly increased

Figure 8: The UK unemployment rate continued to fall in 2022

Figure 9: Since the beginning of the COVID-19 pandemic, total and real earnings have fluctuated

Figure 10: SMEs are concerned about being financially affected by market and economic conditions

Figure 11: Over three quarters of businesses in the IT and business services sector are concerned about generating enough revenue to stay afloat

Figure 12: Over two thirds of the transport, storage, and communication sector are concerned about a situation that would prevent them from trading

Figure 13: The SME insurance market experienced steady growth in 2021

Figure 14: Cyber, property, and business interruption insurance all saw premiums rise at renewal in 2022

Figure 15: Since the COVID-19 pandemic, major commercial insurance lines have experienced fluctuations

Figure 16: In 2022, around 70% of small- and medium-sized businesses purchased packaged insurance

Figure 17: The biggest proportion of cancellations resulting from COVID-19 were seen in commercial motor products in 2022

Figure 18: Some SMEs are not aware employers’ liability is a legal requirement

Figure 19: A fifth of SMEs that do not have usage-based insurance are receptive to the idea

Figure 20: Around three quarters of SMEs would be interested in usage-based car insurance if it reduced their premiums

Figure 21: SMEs view cheaper premiums and improved safety measures as the most important features of usage-based car insurance

Figure 22: Insurers have experienced varying degrees of success with product penetration

Figure 23: Penetration rates rise in line with company size

Figure 24: SME market GWP is set to reach GBP12.1 billion by 2026f

Figure 25: 2022 saw a significant rise in the number of remote workers among SMEs

Figure 26: SMEs are aware that the COVID-19 pandemic increased their cyber risk

Figure 27: SMEs are more likely to buy cyber insurance following the impact of the COVID-19 pandemic

Figure 28: Larger SMEs are more willing to pay for pandemic insurance

Figure 29: Larger SMEs are prepared to spend more on pandemic insurance

Figure 30: Forecasting methodology