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

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UK Commercial Property Insurance Market Report Overview

The gross written premium of the United Kingdom (UK) commercial property insurance market was GBP9 billion in 2021 and is expected to achieve a CAGR of more than 3% during 2021-2026. In the upcoming years, hardening market rates and claims inflation will contribute to robust premium growth, strong business retention rates, and potential new business growth.

The UK commercial property insurance market research report analyzes the commercial property insurance market in the UK, looking at drivers of uptake across different demographics and dwelling types. It discusses the claims landscape in 2021, as well as the commercial property market across London and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs within the space. Future impactors in the market are also examined, including climate change, underinsurance, and the changing office environment.

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

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

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UK Commercial Property Insurance Market Dynamics

Drones are being used in the commercial property sector for claim processing, damage assessment, data collecting and analysis, inspection and site evaluation, and fraud prevention. Due to their potential to deliver faster and safer services when analyzing losses compared to human inspections, drones can evaluate broad areas that are challenging to access. Drones will speed up inspections, allowing insurance companies to perform more evaluations and appraisals each day.

Many products now cost more in the UK because of Brexit, the Russia-Ukraine conflict, and challenges with the global supply chain. The rising cost of construction is driving up the cost of rebuilding many properties. The rising cost of imports in the UK will also have an impact on commercial buildings that house inventory or specialized gear. Numerous current insurance policies on the market are no longer adequate to cover the full costs to businesses of this repair due to the additional time and expense required to replace damaged merchandise or apparatus (or even to rebuild premises themselves). If policies are not consistently updated to reflect price rises, insurers risk losing out on significant premium income and unintentionally underinsuring many firms.

UK Commercial Property Insurance Market Segmentation by Claims Type

The key gross claims type in the UK commercial property insurance market includes fire and explosion, escape of water, weather, business interruption, theft of money, and other theft. Weather-related losses and losses due to fires and the subsequent property damage caused are the two biggest threats to the market. Weather-related losses have been a recurring danger for the property sector over the last two years, with reports of close to GBP500 million in losses. This has put pressure on profitability. It should be emphasized that the commercial property insurance market has very narrow profit margins.

UK Commercial Property Insurance Market Analysis by Claims Type, 2021 (%)

UK Commercial Property Insurance Market Analysis by Claims Type, 2021 (%)

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UK Commercial Property Insurance Market - Competitive Landscape

Some of the leading commercial property insurers in the UK are Aviva, Zurich, AIG, Allianz, AXA, Munich Re, RSA, NFU Mutual, Chubb, and Direct Line Group. In terms of commercial property, Aviva had another good year in 2021, retaining its position as the market leader. This rise has been fueled by better underwriting performance as well as fewer claims associated with COVID-19, according to its 2021 annual report.

UK Commercial Property Insurance Market Analysis by Property Insurers, 2021 (%)

UK Commercial Property Insurance Market Analysis by Property Insurers, 2021 (%)

To know more about the leading UK commercial property insurance market players, download a free report sample

UK Commercial Property Insurance Market Report Overview

Market Size (GWP 2021) GBP9 billion
CAGR (2021-2026) >3%
Historic Period 2017-2020
Forecast Period 2021-2026
Claim Types Fire and Explosion, Escape of Water, Weather, Business Interruption, Theft of Money, and Other Theft
Leading Commercial Property Insurers Aviva, Zurich, AIG, Allianz, AXA, Munich Re, RSA, NFU Mutual, Chubb, and Direct Line Group

Segments Covered in the Report

UK Commercial Property Insurance Claims Type Outlook (Value, GBP Billion, 2021-2026)

  • Fire and Explosion
  • Escape of Water
  • Weather
  • Business Interruption
  • Theft of Money
  • Other Theft

Scope

This report provides:

  • Analysis of the UK commercial property insurance market
  • Drivers of uptake across different demographics and dwelling types
  • Claims landscape in 2020, as well as the commercial property market across London and upcoming regulatory changes within insurance
  • Analysis and comparison of competitors, along with newcomers and insurtechs within the space
  • Future impacts on the market including climate change, underinsurance, and the changing office environment

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 and inflation on the market.
  • Ascertain the market shares of the leading players.
  • Examine future opportunities and challenges within the market.

Aviva
AIG
AXA
RSA
Zurich
Allianz
Munich Re
Chubb
NFU Mutual
Direct Line Group
Legal & General
BentallGreenOak
Esri
Arturo
ICEYE
Maptycs
Zesty.ai
Zoom

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 market grew significantly in 2021
    • 2.2 The year 2021 was expensive for commercial property claims
    • 2.3 The construction sector resumes in 2021, recovering from 2020
    • 2.4 Investment in London experienced the largest increase since 2017
    • 2.5 Tax incentives and regulations have an impact on people’s investment in commercial property
    • 2.6 More commercial-to-residential conversions will occur as housing demand rises and towns level up

  • 3 Competitor Dynamics

    • 3.1 Aviva is still the market leader by some distance

  • 4 The Market Going Forward

    • 4.1 Commercial property insurance will grow to GBP10.8 billion in 2026
    • 4.2 Brexit and COVID-19 will make for a harder recovery for the construction industry than first thought
    • 4.3 Underinsurance problems are exacerbated by global supply-side issues
    • 4.4 ESG initiatives will present opportunities and difficulties for insurers
    • 4.5 Technology is becoming more valuable to commercial property insurers
    • 4.6 The changing landscape of office working represents an opportunity for insurers

  • 5 Appendix

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

  • About GlobalData
  • Contact Us

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