United Kingdom (UK) Commercial Property Insurance Market Trends, Competitor Dynamics and Opportunities

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

The gross written premium (GWP) in the UK commercial property insurance market was valued at GBP12.2 billion in 2022. The commercial property insurance market in the UK is predicted to expand gradually at a CAGR of more than 4% from 2022 to 27. It is projected that factors such as rising repair costs and hardening market rates will fuel premium increases in the coming years.

UK Commercial Property Insurance Market Outlook 2022-2027 (GBP Billion)

UK Commercial Property Insurance Market Outlook 2022-2027 (GBP Billion)

Buy The Full Report for More Information on The UK Commercial Property Insurance Market Forecast, Download A Free Report Sample

The UK commercial property insurance market research report analyzes the property insurance scenario within the commercial insurance market and how it is influenced by volatility in the economy. It also ascertains how newcomers and insurtechs are disrupting and driving innovation in the country’s insurance industry. The report enables clients to identify the impact of Brexit and the effects of the cost-of-living crisis on the UK commercial property insurance space. Furthermore, the report’s outlook presents growth opportunities in the property insurance space as well as challenges faced by the insurance providers.

GWP (2022) GBP12.2 billion
CAGR (2022-2027) >4%
Key Players ·        Aviva

·        AIG

·        Zurich

·       AXA

·       Allianz

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

UK Commercial Property Insurance Market Dynamics

The UK commercial property insurance GWP increased by 18.5% in 2022 when compared to 2021. This growth can be attributed to the ongoing inflationary pressures and increased rebuild costs because of supply chain disruptions. 2021 was a particularly bad year for claims. As a result, insurers increased premiums to offset claims costs and avoid further losses. Furthermore, the rising cost of building supplies, due to supply chain disruptions caused by the pandemic and the Ukraine-Russia conflict, affected the costs of rebuilding and necessitated more extensive insurance coverage.

The construction industry continues to have a significant impact on the performance of the commercial property insurance market in the UK. Additionally, the post-Brexit landscape and the Russia–Ukraine dispute will have a profound effect on the property insurance industry in the UK.

Furthermore, the incidence of underinsured properties remains a concern in the UK as it highlights a rising discrepancy between actual rebuilding costs and the coverage offered by insurance plans. Commercial insurers must warn businesses about the difficulties that underinsurance, whether intentional or unintentional, can cause during the claims process. Nevertheless, the underinsurance gap appears to be closing, thereby increasing the GWP in the coming years.

UK Commercial Property Insurance Market – Growth Opportunities

According to GlobalData’s 2022 and 2023 UK SME Insurance Survey data, around 11.0% of SMEs have switched insurance providers in 2023, due to pricing considerations, underscoring the financial difficulties that businesses are facing. The price volatility of materials and the rising costs of labor will further influence the completion of construction projects, resulting in delays and added costs in a market that is already unstable. Despite this, the UK commercial property insurance market is predicted to expand gradually during the forecast period. The rising repair costs and hardening market rates will drive premium increases over the next five years.

Moreover, sustainable material underwriting will become more relevant as the nation attempts to reach net-zero emissions. Insurers should accommodate the changing construction landscape by properly underwriting these sustainable materials to remain competitive in the market. Aviva has already targeted this through its recent initiative that caters to the underwriting of engineered timber.

Additionally, technological improvements and the use of satellite data will help insurers to manage claims effectively, by foreseeing possible chances of property damage from calamities such as floods, and hurricanes, thereby offering quick financial help for repairs. This prompt handling of claims can increase client loyalty. Also, AI-driven services will enable insurers to increase the accuracy of risk profiling and deliver personalized, real-time customer support, in addition to improving customer experience, lowering operating costs, and streamlining procedures.

UK Commercial Property Insurance Market – Competitive Landscape

A few of the leading insurers operating in the UK commercial Property insurance market are Aviva, AIG, Allianz, Zurich, and AXA among others. In 2022, Aviva remains the top provider of commercial property insurance in the UK, followed by AIG and Zurich.

UK Commercial Property Insurance Market Analysis, by Key Players

UK Commercial Property Insurance Market Analysis, by Key Players

Buy The Full Report for More Insights on The UK Commercial Property Insurance Market Players, Download A Free Report Sample

Scope

• The UK commercial property insurance market is expected to grow by 9.1% to GBP13.3 million in 2023, following an 18.5% growth in 2022.

• Gross claims incurred declined by 16.4% in 2022, driven particularly by a significant 48.3% decrease in BI claims.

• There was a 5.8% drop in claims notified, from 173,000 to 163,000, which helped to lower the total value of claims incurred.

• Aviva holds its position as market leader with a 12.3% share of the market. It is expected to increase its share in 2023 courtesy of it now being able to underwrite engineered timber, showing its dedication to environmental, social, and governance (ESG) initiatives.

Reasons to Buy

  • Analyze the drivers of growth within the UK commercial property market.
  • Determine areas of concern for insurers and the wider market, including in the claims landscape.
  • Recognize the impact of Brexit, the cost-of-living crisis, and inflation on the market.
  • Ascertain the market shares of the leading players.
  • Examine future opportunities and challenges within the market.

Aviva
AIG
Zurich
AXA
Allianz
Munich Re
RSA
Chubb
NFU Mutual
Direct Line
Knight Frank
Savills
Winterflood
Cluttons
Willis Towers Watson
Ageas
JPMorgan
Intelligent AI
Arturo
ICEYE
Maptycs
Zesty.ai

Table of Contents

  • 1. Executive Summary

    • 1.1. Market overview
    • 1.2. Key findings
    • 1.3. Critical success factors

  • 2. Market Dynamics

    • 2.1. The UK commercial property insurance market continued its strong growth in 2022
    • 2.2. The claims landscape for commercial property recorded falls in both claims incurred and notified in 2022
    • 2.3. The construction sector continues to sustain growth in 2022, after being hampered in 2020
    • 2.4. Investment in London slows down and is expected to fall again in 2023
    • 2.5. Tax incentives and regulations have an impact on commercial property investment
    • 2.6. Commercial-to-residential conversions will affect the commercial property market

  • 3. Competitor Dynamics

    • 3.1. Aviva remains the largest commercial property insurance provider in 2022
    • 3.2. Further developments

  • 4. The Market Going Forward

    • 4.1. Commercial property insurance is expected to grow to GBP15.2 billion by 2027
    • 4.2. Inflationary pressures and high-interest rates will impact the construction industry
    • 4.3. The underinsurance gap remains but appears to be closing
    • 4.4. Sustainable material underwriting will become more relevant as the nation transitions to net zero
    • 4.5. Technology offers insurers better claims assessment and cheaper property valuations
    • 4.6. Changing office working models can present both an opportunity and drawback for insurers

  • 5. Appendix

    • 5.1. Abbreviations and acronyms
    • 5.2. Methodology
    • 5.3. Secondary sources
    • 5.4. Further reading

  • About GlobalData
  • Contact Us

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

Frequently asked questions

United Kingdom (UK) Commercial Property Insurance Market Trends, Competitor Dynamics and Opportunities standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

United Kingdom (UK) Commercial Property Insurance Market Trends, Competitor Dynamics and Opportunities was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS

Related reports

View more Property reports
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Financial Services
New
Apple Pay - Competitor Profile
$350 | June 2024
Financial Services
New
Luxembourg PESTLE Insights - A Macroeconomic Outlook Report
$500 | June 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at United Kingdom (UK) Commercial Property Insurance Market Trends, Competitor Dynamics and Opportunities in real time.

  • Access a live United Kingdom (UK) Commercial Property Insurance Market Trends, Competitor Dynamics and Opportunities dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.