Research and Markets (http://www.researchandmarkets.com/reports/c89842) has announced the addition of Claims Management in UK General Insurance 2007 to their offering.
This report provides a comprehensive analysis of claims costs in the UK general insurance market covering motor, property and liability insurance. It reviews historical claims costs and makes predictions about the future claims bill as well as discussing the drivers behind these forecasts. The report also analyses the claims management efficiency of a number of competitors in the market.
Scope
- Detailed analysis of the claims cost efficiency of the top 20 insurers in the motor, property and liability markets
- Extensive claims costs and underwriting data for the motor, property and liability markets
- Forecasts of net claims incurred for the motor, property and liability markets until 2012
Highlights of this title
The number of road accidents fell significantly in 2006, declining by 5.0 per cent to a total of 189,000. The number of accidents has been declining steadily since 1997, and accidents have declined particularly quickly since 2001, falling by an average of over 3.5 per cent per year between 2001 and 2006.
The ratio of total claims management costs to total net claims incurred reached 5.7 per cent in 2006, an increase of 0.1 percentage points from 2005 indicating a small decline in total claims handling efficiency
UKI Ins was the most efficient property insurance claims handler in 2006. UKI Ins recorded the lowest ratio of property insurance claims management costs to net property insurance claims incurred at just 1.6 per cent in 2006 despite its ratio deteriorating by 0.4 percentage points from 2005.
Key reasons to purchase this title
- Benchmark your claims handling efficiency against your competitors
- Understand the key trends in motor, property and liability insurance claims costs
- Gain an insight into profitability of the motor, property and liability insurance markets
Content Outline:
Overview
Catalyst
Summary
Executive Summary
The UK motor insurance market made a loss in 2006 however property and liability made profits
Underwriting losses grew in the motor market in 2006 as private motor losses exceeded profits in the commercial motor market
Property underwriting profits continued to decline during 2006 but the market remains profitable
The liability underwriting result improved for a fifth consecutive year in 2006, and the market finally achieved profitability
Total claims handling efficiency has declined in 2006 driven by increases in motor claims management costs
The motor ratio of claims management costs to net claims incurred rose by 0.1 percentage points
The property ratio of claims management costs to net claims incurred fell by 0.1 percentage points
The liability ratio of claims management costs to net claims incurred fell by 0.1 percentage points
Motor, property and liability net claims costs are expect to rise between 2006 and 2012
Personal injury claims will be the main driver of motor claims costs
Increases in the cost of rebuilding properties will have an impact on property claims costs
Personal injury claims, changes in periodical payments will have an impact on liability claims costs
Table of figures
Table of tables
Introduction
What is this report about?
Who is the target reader?
Market context
The UK motor insurance market continued to contract in 2006 with underwriting losses in the private motor market deteriorating
Both private and commercial motor markets contributed to the decline in motor premium income in 2006
Comprehensive private motor premium led the deterioration in private motor insurance premium income
Underwriting losses grew in the motor market in 2006 as private motor losses exceeded profits in the commercial motor market
Total underwriting loss in the private motor market reached £448m in 2006
Personal injury remains the main driver behind claims inflation
The number of road traffic accidents has fallen steadily since 1997 as a result of greater road safety
Despite the fact that the total number of licensed vehicles continues to rise, the number of road traffic accidents is falling
Road accident casualties fell in 2006
Property GWP fell in 2006, led by the soft commercial property sector where underwriting profits dropped
Household insurance GWP increased in 2006, while commercial property GWP fell
Property underwriting profits continued to decline during 2006 but the market remains profitable
The commercial property underwriting result decreased in 2006 for a second consecutive year
Commercial property claims were benign in 2006, as a lack of any serious weather incidents kept claims numbers low
Commercial property claims costs resulting from fire; business interruption and weather damage all fell in 2006
Fire accounted for the majority of costs for commercial property claims in 2006
Business interruption claims costs, following fire and weather damage, fell in 2006
Weather claims costs for commercial property insurance declined in 2006
Theft claims costs increased in 2006
The increase in theft claims costs was due to a rise in average claims value in 2006
The household insurance market experienced a reduction in the cost of weather claims in 2006, but an increase in the cost of claims from other perils
The cost of domestic property claims fell slightly in 2006, as a result of a fall in weather related costs
Storm damage accounted for the largest part of the weather claims bill for households in 2006
The cost of domestic fire claims increased in 2006
The cost of household theft claims rose by 9.9% in 2006 as both the number of claims and the average cost of claims increased
The number of burglaries fell by 0.8% in 2006-07
The risk of burglary is heavily influenced by factors such as tenancy status and security measures
Subsidence claims costs grew in 2006 as did the average cost of claims
The total general liability market contracted in 2006, but it moved into an underwriting profit
Competitive conditions in the liability market resulted in lower premium income
The liability underwriting result improved for a fifth consecutive year in 2006, and the market finally achieved profitability
The total number of personal injury claims rose by 5.4% in 2006-7
The number of accident claims increased by 8.3% in 2006-07
The number of disease claims fell in 2006-07, declining by 36.4%
Workplace accidents and work-related ill-health dropped again in 2005-06
The number of workplace injuries dropped in 2005-06
Workplace fatalities increased in 2005-06 mainly due to more fatalities among the public
Competitive dynamics
Introduction
Total claims handling efficiency has declined in 2006 driven by increases in motor claims management costs
The motor ratio of claims management costs to net claims incurred rose by 0.1 percentage points
The property ratio of claims management costs to net claims incurred fell by 0.1 percentage points
The liability ratio of claims management costs to net claims incurred fell by 0.1 percentage points
Norwich Union and UKI performed well in terms of motor claims management efficiency
Norwich Union and UKI were the most efficient insurers in terms of claims management out of the top five motor insurers in 2006
Fortis remained the most efficient motor insurance claims handler in 2006
Highway saw the largest improvement in its claims management efficiency while Direct Line recorded the largest decline
AXA and Norwich Union performed well in terms of managing property claims
AXA and Norwich union achieved relatively low ratios in 2006
UKI was the was the most efficient of the top 20 insurers at handling property insurance claims in 2006
Allianz achieved the largest reduction it its property claims efficiency ratio in 2006
Zurich and Norwich Union both saw their ratios deteriorate in 2006
Norwich Union recorded a relatively low ratio of liability claims management costs to net claims incurred in 2006
Norwich Union was the most efficient claims handler out of the top five liability insurers
Brit replaced Aspen as the most efficient liability insurance claims handler in 2006
NIG achieved the largest reduction in its ratio in 2006
The future decoded
Motor claims cost will increase by a CAGR of 5.2% between 2007 and 2012 primarily driven by increases in the cost of personal injury claims
Personal injury claims will continue to have a strong effect on total claims costs
The UK motor insurance market will see claims costs increase by 5.2% per annum between 2007 and 2012
A number of factors will provoke an increase in property insurance claims costs between 2007 and 2012
Increases in the cost of rebuilding properties will have an impact on claims costs
Property claims are estimated to have reached £7.5 billion in 2007
Liability claims costs are forecast to reach £5 billion driven largely by personal injury claims
Personal injury claims will be the main driver of claims costs
Liability claims cost are expected to increase by a CAGR of 9% between 2007 and 2012
APPENDIX
CIS
Definitions
Market Context
Gross Premium
Written premiums
Competitive Dynamics
2005-06 definitions for line of business
Motor
Total private motor
Total commercial motor
Private motor comprehensive
Private motor non-comprehensive
Motorcycle
Fleets
Commercial vehicles (non-fleet)
Property
Total commercial property
Household and domestic all risks.
Consequential loss (i.e. business interruption)
Liability business
Employers liability (including the employers liability part of mixed liability packages but excluding mixed commercial packages)
Professional indemnity (including directors and officers liability and errors and omissions liability)
Public and products liability
Mixed commercial package
Further reading
Ask the analyst
Our consulting
Disclaimer
List of Tables
List of Figures
Companies Mentioned:
- AXA
- Churchill Insurance Company Limited
- Fortis
- Groupama S.A.
- HSBC Holdings plc
- Lloyds TSB Group plc
- NFU Mutual Group
- Royal & Sun Alliance Insurance Group plc
- Zurich Financial Services
For more information visit http://www.researchandmarkets.com/reports/c89842.
Source: Datamonitor
Contacts:
Laura Wood
Senior Manager
Fax: +353
1 4100 980
press@researchandmarkets.com
