UK Home Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

UK Home Insurance Market is Segmented by Type of Home Insurance and by Channel of Distribution.

UK Home Insurance Industry Overview

UK Home Insurance Market Summary
Study Period: 2019 - 2028
CAGR: 7.3 %

Major Players

UK Home Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Home Insurance Market Analysis

The UK home insurance market is forecast to scrape a profit in 2022, as it reels from severe weather in Q1 - including the wettest month on record in February - before falling into unprofitable territory in 2021. The UK’s insurance sector is one of the world’s largest, managing investments of £1.8 trillion and employing 300,000 individuals. The insurance sector however could be one of the most impacted by Brexit due to the level of regulation and interconnection between the UK and EU financial systems.

Industry disruptors are looking to take advantage of areas that have needed improvement. Using big data can improve efficiency in underwriting, assessing risks and claims, customer retention and engagement, security, prevention of fraud, and improving the customer purchasing journey. UK was the fourth largest insurance market in the world, in 2021.

The United Kingdom also has the highest insurance penetration rate in Europe at over 14 percent, with approximately 41.6 million UK adults owning some form of general insurance. The main insurance types are building, content, and combined.

UK Home Insurance Industry Segments

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.

Home Insurance Type
Building/ Property Insurance
Contents Insurance
Building & Content Insurance
Renter's or Tenant's Insuarance
Landlord's Insurance
Strata/ Holiday Home Insurance
Distribution Channel
Direct
Independent Advisers
Banks/Building societies
Utilities/Retailers/Affinity Groups
Company Agents
Online Channels

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UK Home Insurance Market Trends

This section covers the major market trends shaping the UK Home Insurance Market according to our research experts:

InsurTech and UK insurance Industry

Since breaking onto the market, European insurtechs have concentrated in several key areas including direct insurance, comparison websites, product development, and risk assessment. Industry disruptors are looking to take advantage of areas that have needed improvement. Using big data can further efficiency in underwriting, assessing risks and claims, customer retention and engagement, security, prevention of fraud, and improving the customer purchasing journey.

Fire detectors, secure systems, and water leakage detectors have been on the market and in people’s homes for a while now, but the ability to connect all of them to a smartphone or tablet and manage them remotely has only been possible in recent years. Collaboration between the insurance sector and technology companies on the smart home market could seriously lower the risk of claims being paid out, while delivering added value to the customer through enhanced feeling of security.

Some insurers have already embraced the opportunity by providing discounts if homes are equipped with certified locks or a burglar alarm. An alternative approach is offering smart home tech and insurance coverage as part of the insurance package. Overall, the leading 10 insurance brands in the United Kingdom made up two-thirds of the insurance sectors share of voice with comparison websites taking the largest share.

Customers favour simplicity; they want products that are easy to understand, purchase and use, they also want to be confident that they are paying a fair price, and to trust that claims will be paid fairly; with this insight, insurers can use a human-centred approach to redesign products and exceed customers’ expectations

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.

UK Home Insurance Market: Median Premium Paid Online for Home Insurance in the United Kingdom (GBP) Million

Buildings and Contents Insurance in the Digital Age

In the current rapidly evolving world, the policyholders want to understand risks better and learn how to foresee and mitigate potential threats. To reduce the frequency and severity of claim incidents and engage better with customers, more insurers are providing risk prevention services.

Each year, over 90% of combined buildings and contents home insurance policyholders are existing policyholders and their choice comes down to either renewing with an existing provider (around half renew each year) or switching from one provider to another (around four-in-ten switch each year). For contents only and building only insurance a greater proportion of policyholders embarking on a new customer journey each year are new market entrants - i.e., buying home insurance for the first time. Even if renewing, policyholders generally still embark on a new customer journey: over eight-in-ten of policyholders owning combined cover who renew still search for alternatives policies and/or negotiate for a revised deal from their provider before they agree to renew.

As insurers re-engineer their offerings to find renewed resilience and stability in the flux of global uncertainty, industry leaders have the opportunity to evolve legacy environments and redefine differentiated value. Despite new challenges that have emerged out of an increasingly complex and challenging competitive landscape, the insurance industry is presented with immense innovation potential

With high technology adoption, data streams are multiplying — and as consumers are increasingly plugged in, new opportunities are emerging. Agile innovators able to integrate transformative technology, behavioral economics, and collaborative ecosystems will set the pace for change.

UK Home Insurance Market: Commercial Home Insurance Premiums of Buildings and Contents

UK Home Insurance Market Competitor Analysis

The UK Home Insurance Market is highly competitive, with the presence of major international players. The UK Home Insurance Market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the UK Home Insurance Market has an observable level of consolidation.

UK Home Insurance Market Top Players

  1. Aviva

  2. Direct Line

  3. LV/Liverpool Victoria

  4. Halifax

  5. AXA

*Disclaimer: Major Players sorted in no particular order

UK Home Insurance Market Concentration

UK Home Insurance Market Recent Developments

  • The cost of home insurance may fall in 2022 as changing regulation, plus the ongoing pandemic, impacts on the cost of general insurance, causing significant downward pressure on premium rates across both personal and commercial lines. Homeowners across the UK have seen a 1.2% drop in average home insurance premiums thanks to a reduction in break-ins and water damage claims resulting from lockdown.

  • The new rules will require home insurance prices to be the same for both new customers and those renewing. Traditionally, discounts on new business have been funded by increased pricing on renewal. As a result, under the new regulations, those that already shop around may see price increases, whilst those that have remained with an insurer for a number of years may see price drops.

UK Home Insurance Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

      1. 4.1.1 UK Current Economic and Banking Industry Scenario

      2. 4.1.2 Impact of Global Insurance Market on UK Industry

      3. 4.1.3 A Brief Note on UK General and Home Insurance Market Scenario

    2. 4.2 Impact of Government Regulations and Initiatives on the Insurance Industry

    3. 4.3 Market Drivers

    4. 4.4 Market Restraints

    5. 4.5 Key Trends in UK Insurance Industry

    6. 4.6 Review and Commentary on Impact of BREXIT on the UK Insurance Industry

    7. 4.7 Impact of InsurTech on the UK Inusrance Industry

    8. 4.8 Impact of COVID-19 on UK Home Insurance Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Home Insurance Type

      1. 5.1.1 Building/ Property Insurance

      2. 5.1.2 Contents Insurance

      3. 5.1.3 Building & Content Insurance

      4. 5.1.4 Renter's or Tenant's Insuarance

      5. 5.1.5 Landlord's Insurance

      6. 5.1.6 Strata/ Holiday Home Insurance

    2. 5.2 Distribution Channel

      1. 5.2.1 Direct

      2. 5.2.2 Independent Advisers

      3. 5.2.3 Banks/Building societies

      4. 5.2.4 Utilities/Retailers/Affinity Groups

      5. 5.2.5 Company Agents

      6. 5.2.6 Online Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview (Market Shares And M&A Deals)

    2. 6.2 Company Profiles

      1. 6.2.1 Admiral Group

      2. 6.2.2 Aviva

      3. 6.2.3 Direct Line Group

      4. 6.2.4 Ageas

      5. 6.2.5 Axa Insurance UK

      6. 6.2.6 Zurich

      7. 6.2.7 LV/Liverpool Victoria

      8. 6.2.8 AA Home Insurance

      9. 6.2.9 Churchill

      10. 6.2.10 Halifax*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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UK Home Insurance Market Research FAQs

The UK Home Insurance Market is studied from 2019 - 2028.

The UK Home Insurance Market is growing at a CAGR of 7.3% over the next 5 years.

Aviva, Direct Line, LV/Liverpool Victoria, Halifax, AXA are the major companies operating in UK Home Insurance Market.

UK Home Insurance Industry Reports

In-depth industry statistics and market share insights of the UK Home Insurance sector for 2020, 2021, and 2022. The UK Home Insurance research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the UK Home Insurance report PDF.

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