UK Home Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

As of 2017, there are 22.6 million homes in the UK, but 5 million households (more than 1 in 5) do not have home contents insurance. The average UK household contains worth in excess of GBP 35,000 – that’s more than the average salary of GBP 27,000. The total amount of net written premiums in the property insurance in UK is valued at EURO 7360 million in 2017, which is an increase of 8.33 % from 2017. The category has recorded a CAGR of -2.43% during (2014-2019) and it is expected to pick up the pace of growth during the forecasted period with a CAGR of 1.5% by 2024. In 2016 there were 9.3 million home insurance policies across the UK where customers had been loyal to their insurance provider for six years or more and 6.9 million policies where customers switched after a year.

Scope of the Report

The Home Insurance Market covers types of Insurance policies available in the current UK Insurance Scenario: Building/property Insurance, Contents Insurance, Buildings, and Contents Insurance, Renter's or Tenant's Insurance, and Strata/ Holiday home Insurance Along with the distribution channels operated in the industry. Furthermore, considering the growing online Insurance platforms in the country a detailed study presented on that separately.  

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Key Market Trends

​​​​​​​InsurTech Influences today's Insurance consumers.

Technological advancements have the potential opportunities to address the rising consumer desires and regulatory demands in the Insurance Industry. InsurTech is highly contributing to solving the complexities with it's wearable, automotive and smart home technology solutions through the various digital platforms. Insurers are increasing investments in innovation and emerging technologies in the distribution channels proving that they offer more than just traditional insurance coverage to policyholders.

Industry reports explore that UK InsurTechs saw over USD 1 billion of investment activity through 2018, up from USD 792 million in 2017. In line with overall FinTech investment activity, InsurTech was fuelled by the first half of the year with investment nose-diving in H2-2018. Between July and December 2018, just USD 63 million of investment activity took place, versus USD 406 million during the same period in 2017.

Purchasing household insurance policies online has become increasingly popular in the UK, and is the most used channel by the policy seekers. Industry sources reported that currently, more than 40% of sales are happening through online platforms.  Providers must have a strong online presence in order to ensure growth in the present market scenario. The most common pre-purchase activity is visiting a price comparison website, highlighting the importance of price for customers. As a result, it is essential that both premium prices and the cover provided are extremely competitive.

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