UK Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 23.44 Billion |
| Market Size (2029) | USD 28.74 Billion |
| CAGR (2024 - 2029) | 4.16 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UK Motor Insurance Market Analysis
The United Kingdom Motor Insurance Market size in terms of gross written premiums value is expected to grow from USD 23.44 billion in 2024 to USD 28.74 billion by 2029, at a CAGR of 4.16% during the forecast period (2024-2029).
COVID-19 was an unprecedented event for the insurance sector. With a lengthy lockdown, many drivers were no longer on the road using their vehicles. The cumulative effect of this is that there has been a significant reduction in motor insurance claims.
Motor insurance covers cars, trucks, motorcycles, or other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Motor Insurance in the UK also offers financial protection from theft of the vehicle and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The rise in accidents, implementation of stringent government regulation for adopting auto insurance, and surge in automobile sales across the globe drive the UK auto insurance market growth.
Motor insurance is the largest segment in the non-life insurance market. The gross premium written for non-life insurance is increasing, the major driver being the increase in gross premium written from motor vehicle insurance. Growth in motor vehicle insurance is often important in explaining the overall trends in the non-life sector, as insurers collect the largest premiums in motor vehicle insurance. This line of business was identified as a driver of developments in the non-life segments in several countries. At the global level, motor vehicle insurance contributes about 36.3% of non-life insurance premiums.
In London and North West, the regions with the highest average motor insurance premiums, customers had to pay more than GBP 1,000. In contrast, in the South West, average motor insurance premiums were GBP 473, over three times lower than in London.
UK Motor Insurance Market Trends
This section covers the major market trends shaping the UK Motor Insurance Market according to our research experts:
High Volatility in Car Insurance Premiums During the Past Few Years
The average cost of comprehensive car insurance has been affected significantly in the past few years. For instance, according to the data published by the Association of British Insurers, the average cost of comprehensive car insurance declined to GBP 436 (USD 524) in the first quarter of 2021 from GBP 468 (USD 563) in the fourth quarter of 2020. The premium further declined to GBP 416 (USD 500) in the first quarter of 2022, from GBP 440 (USD 529) in the fourth quarter of 2021. This volatility has been mainly due to the effect of the COVID-19 pandemic in 2020 and 2021. The lockdowns imposed by the local government reduced the overall distance traveled during this period, which in turn resulted in a lower number of claims. However, the premium prices recovered until the last quarter of 2022, owing to the risen inflation and increased prices of paint, replacement parts, and other repair costs.
Surge in Funding towards the Fintech Industry is Anticipated to Surge the Market
The UK is the second largest destination for FinTech investment, after the United States. The UK continues to be the most attractive destination for FinTech in Europe, and investments in the sector grew by 9.1 billion in the first half of this year, a 24 percent increase from the same period in 2021. The FinTech sector in the UK is comprised of over 1,600 firms, a number that is projected to double by 2030. The sector contributes an estimated $13.4 billion (£11 billion) and over 76,000 jobs to the UK economy.
UK Motor Insurance Industry Overview
The United Kingdom Motor Insurance Market is consolidated, with the top 10 players having more than 80% share. Some of the major players operating currently dominate the market. The market is expected to grow during the forecast period due to the increase in sales of motor vehicles and many other factors driving the market. Companies such as AVIVA, The Prudential Assurance Company, Zurich Assurance Limited, AXA Insurance UK Plc, and others have a strong presence in the UK motor insurance market.
UK Motor Insurance Market Leaders
AVIVA
THE PRUDENTIAL ASSURANCE COMPANY LIMITED
ZURICH ASSURANCE LTD
DL INSURANCE SERVICES LIMITED
AXA INSURANCE UK PLC
*Disclaimer: Major Players sorted in no particular order
UK Motor Insurance Market News
- Feb 2022: For an initial payment of GBP 47.5 million, AXA UK&I purchased the renewal rights to Ageas UK's commercial operations. This acquisition reinforces AXA's growth strategy and dedication to its commercial business clients and broker alliances, particularly in the SME and Schemes market sectors. About 100 Ageas UK personnel will transfer to AXA Commercial as part of the arrangement to provide continued support and service delivery.
- Jan 2022: The cost of a comprehensive car insurance policy in Britain is expected to be volatile this year after rising 5% in the final quarter of 2021 as more drivers took to the roads to ease COVID-19 curbs. Motorists must pay GBP 539 (USD 734.06) on average for their comprehensive car insurance premiums.
UK Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porters 5 Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID 19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Third-Party
5.1.2 Third-party Fire and Theft
5.1.3 Comprehensive
5.2 By Distribution channel
5.2.1 Direct
5.2.2 Agency
5.2.3 Banks
5.2.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 AVIVA
6.2.2 THE PRUDENTIAL ASSURANCE COMPANY LIMITED
6.2.3 ZURICH ASSURANCE LTD
6.2.4 DL INSURANCE SERVICES LIMITED
6.2.5 AXA INSURANCE UK PLC
6.2.6 GENERAL REINSURANCE AG
6.2.7 ALLIANZ INSURANCE PLC
6.2.8 ROYAL & SUN ALLIANCE INSURANCE PLC
6.2.9 AGEAS INSURANCE LIMITED*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
UK Motor Insurance Industry Segmentation
Motor insurance includes products and services purchased for cars, trucks, and other road vehicles. Its primary objective is to protect against physical damage from traffic collisions and against liability that could also arise. This report aims to provide a detailed analysis of the United Kingdom motor insurance market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it analyses the key players and the competitive landscape in the United Kingdom Motor Insurance Market. Further, the market is segmented by type (third-party, third-party fire and theft, and comprehensive) and by distribution channel (direct, banks, agents, and others). The report offers market size and forecasts for the United Kingdom Motor Insurance Market in value (USD billion) for all the above segments.
| By Product Type | |
| Third-Party | |
| Third-party Fire and Theft | |
| Comprehensive |
| By Distribution channel | |
| Direct | |
| Agency | |
| Banks | |
| Others |
UK Motor Insurance Market Research FAQs
How big is the United Kingdom Motor Insurance Market?
The United Kingdom Motor Insurance Market size is expected to reach USD 23.44 billion in 2024 and grow at a CAGR of 4.16% to reach USD 28.74 billion by 2029.
What is the current United Kingdom Motor Insurance Market size?
In 2024, the United Kingdom Motor Insurance Market size is expected to reach USD 23.44 billion.
Who are the key players in United Kingdom Motor Insurance Market?
AVIVA, THE PRUDENTIAL ASSURANCE COMPANY LIMITED , ZURICH ASSURANCE LTD, DL INSURANCE SERVICES LIMITED and AXA INSURANCE UK PLC are the major companies operating in the United Kingdom Motor Insurance Market.
What years does this United Kingdom Motor Insurance Market cover, and what was the market size in 2023?
In 2023, the United Kingdom Motor Insurance Market size was estimated at USD 22.5 billion. The report covers the United Kingdom Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Motor Insurance Industry Report
Statistics for the 2024 UK Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Motor Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
