Market Size of United Kingdom Motor Insurance Industry
| 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 |
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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.
