Market Trends of United Kingdom Motor Insurance Industry
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.
