The economy is expected to undergo a challenging phase between 2013 and 2017 as the French economy is expected to post a weak CAGR of 1. 2% while the Spanish economy will post 0.7%

Thursday 11 July 2013, Amsterdam

$ Gross written premiums in the household insurance category rose by 0.6% in 2012, slowing from the expansion recorded in 2011. Premium income grew at a CAGR of 3.4% between 2008 and 2012, eventually totaling GBP5.26 billion.

The strength of the housing market is a primary driver of demand for household insurance. The year 2012 saw slower growth in mortgage lending and house prices, and a slump in private housing construction. The soft recovery in the UK housing market, coupled with the fragility in the wider economy, will remain a challenge for the household insurance category. A strong rebound in economic growth is not expected to materialize until 2014, but as this recovery gains traction, growth rates in premiums will also pick up.

Claims paid by household insurers jumped by 11.3% in 2012, in line with an increase in payouts for flood damage after heavy rainfall. The UK has experienced two of its wettest years on record since 2008, a factor behind the 19% rise in claims paid between 2008 and 2012. Despite high claims payouts and a fall in investment income, household insurers remained profitable between the same period. This strong underwriting base faces challenges ahead, however, as the model of distribution shifts in favor of price-comparison websites.

As the economy languished in the wake of the 2008 global financial crisis, the use of online price comparison websites has risen quickly. This changing dynamic in insurance distribution signals that consumers have become accustomed to shopping around for lower-priced premiums. This behavior is expected to continue once the economic recovery gathers speed, and although it increases transparency for consumers, aggregators will squeeze premium growth for insurers.


Target audience

• Insurance companies
• UK Clients
• Suppliers to insurance companies.
• Contractor research organizations
• Trade body, academia or other industry observers
• Companies involved at any stage in the manufacturing, procurement and marketing process
• Marketing and advertising agencies

Reasons to buy

• Receive an assessment of the competitive dynamics in the UK’s household insurance industry.
• Understand the demand-side dynamics, key market trends and growth opportunities within the UK’s household insurance industry.
• Identify the growth opportunities and market dynamics within key segments.
• Gain insights into key regulations governing the UK’s household insurance industry and its impact on companies and the industry's future.
• Gain the knowledge needed in order to make strategic business decisions using in depth historic and forecast industry data related to the UK’s household insurance industry and each segment within it.