Recently Viewed
empty-cart

There are no Recent Items

Close
Login/Register

Close
Single User License Price USD 3450
Single User License Price INR 246089
Corporate User License Price USD 10350
Corporate User License Price INR 738266
Site License Price USD 6900
Site License Price INR 492177
Request a Quote

Report Title

UK SME Insurance: Market Dynamics and Opportunities 2018

Quote Request for License Type
License Type Price  
Single User License USD 3450
Site License USD 6900
Enterprise Wide License USD 10350
"Thanks for submitting the form. Our marketing team will connect back to you for the budget constraint."
Close
REQUEST A CUSTOMIZED RESEARCH

Report Title

UK SME Insurance: Market Dynamics and Opportunities 2018


Quote Request for License Type
License Type Price  
Single User License USD 3450
"Thanks for letting us know your requirement. Our research team will connect back to you for the bespoke requirement."
Close
REQUEST FOR SAMPLE REPORT

Report Title

UK SME Insurance: Market Dynamics and Opportunities 2018

"Thanks for submitting the form. The concerned team will send the sample report in the next 12 hours."
"Thank you for downloading the sample report."
Close

UK SME Insurance: Market Dynamics and Opportunities 2018



Executive Summary

UK SME Insurance: Market Dynamics and Opportunities 2018

Summary

This report analyzes the UK SME insurance market. Economic factors including GDP growth, SME business confidence, and unemployment rates are explored in relation to the UK business landscape. Growth in the number of SMEs is explored by business size and industry. The SME market is discussed in relation to the uptake of commercial insurance. Finally an estimate of the current and historic market size is provided, in addition to a five-year forecast.

The UK SME insurance market saw modest growth in 2017, as it grew by 1.4% to GBP7.8bn. But the market environment has been challenging. Brexit uncertainty has slowed GDP growth, which is intrinsically linked to the SME market, with conditions benign as insurers and reinsurers have faced no major incidents forcing significant payouts. There have been several factors counteracting this, which resulted in the very slight growth seen in 2017. The change to the Ogden rate has seen rates harden, particularly in motor-based categories, which have seen strong growth in premium prices since 2016. Yet the number of registered businesses rising in 2017 was largely countered by a rise in liquidations and a fall in penetration rates for insurers. This has been especially prevalent among micro businesses-a segment insurers continue to struggle to engage with.

Scope

- Micro businesses account for 95.7% of UK private sector enterprises but just 22.0% of turnover.

- Cyber insurance uptake is on the rise as the issue features heavily among SMEs' top concerns.

- 38% of SMEs are concerned about the implications of Brexit.

- The UK SME insurance market is forecast to be worth GBP8.3bn by 2022.

Reasons to buy

- Be aware of the significance of SMEs within the commercial insurance market and how they are influenced by the UK economy.

- Adapt your strategy and ensure you remain competitive by understanding the opportunities for growth within the SME insurance market.

- Recognize the challenges the SME insurance market faces.

- See our forecasts for the SME market.

Table of Contents

1. EXECUTIVE SUMMARY 2

1.1. The SME market has stalled due to tough economic conditions 2

1.2. Key findings 2

1.3. Critical success factors 2

2. THE SHAPE OF THE UK SME SPACE 7

2.1. The SME market is the backbone of the UK economy 7

2.1.1. The number of UK SMEs continues to grow, driven by micro enterprises 7

2.1.2. UK GDP growth remained slow throughout 2017 10

2.1.3. The number of company liquidations rose again in 2017 after falling between 2008 and 2015 12

2.1.4. Construction leads the SME market by business numbers, while wholesale dominates turnover 14

2.1.5. The number of companies registered has risen despite an increase in dissolutions 16

2.1.6. Business and consumer confidence have been affected by the possibility of a no deal Brexit 18

2.1.7. UK unemployment continues to fall to record lows 19

2.1.8. Business profits are likely to fall if household disposable income is squeezed 20

2.2. Key issues affecting SMEs 21

2.2.1. Pension contributions, exchange rates, and business rates mean costs have mounted for SMEs 21

2.2.2. Rising employment costs and economic uncertainty have led to growing use of freelancers 26

2.2.3. The government and banks are aiming to spark investment in SMEs 27

2.2.4. The manufacturing sector is most at risk from a no deal Brexit 28

2.2.5. The end of freedom of movement will hit food and drink manufacturers hardest 29

2.2.6. SMEs are most concerned about Brexit and cybercrime 30

3. THE UK SME INSURANCE MARKET 33

3.1.1. The SME sector is strategically important for insurance 33

3.1.2. The SME market registered limited growth in 2017 33

3.1.3. Motor-based categories have kept rates steady as competition stunts growth 36

3.1.4. Public liability remains the leading SME insurance product 37

3.1.5. Insurance product penetration varies by SME industry, in line with the risks involved 38

3.1.6. Declining penetration rates are a growing issue insurers need to address 40

4. THE FUTURE OF THE UK SME INSURANCE MARKET 44

4.1. SME insurance is set to exceed GBP8.0bn by 2020, but growth will remain slow 44

4.1.1. Cybercrime remains a key worry, and insurers need to respond 46

4.1.2. The changing face of SMEs needs to be catered for 46

4.1.3. The insurance industry is looking to real-time insight to help SMEs 47

5. APPENDIX 48

5.1. Abbreviations and acronyms 48

5.2. Methodology 48

5.2.1. GlobalData's 2018 UK SME Insurance Survey 48

5.2.2. Market sizing 48

5.3. Bibliography 48

To know more information on Purchase by Section, please send a mail to sales@kenresearch.com

List of Figures

Figure 1: Micro businesses accounted for 95.6% of enterprises in the UK in 2017 10

Figure 2: UK GDP continues to grow, but at a very slow rate 11

Figure 3: Further growth in company liquidations was seen in 2017 13

Figure 4: Wholesale and retail features prominently in all four SME categories for number of businesses 15

Figure 5: Wholesale and retail is particularly dominant in terms of SME segment by turnover 16

Figure 6: New company registrations continue to grow 17

Figure 7: The FSB's Small Business Confidence Index has fluctuated since Brexit 19

Figure 8: The UK unemployment rate has continued to decline 20

Figure 9: Real wages remain stagnant in the UK despite growth in nominal wages 21

Figure 10: The pound has weakened in comparison to both the US dollar and the euro 22

Figure 11: Inflation experienced sharp growth in September 2018 24

Figure 12: Business rates are set to rise in April 2019 25

Figure 13: Larger SMEs are particularly reliant on freelance workers 27

Figure 14: Nearly a quarter of food and drink manufacturing employees are migrant workers 30

Figure 15: Brexit once again tops SMEs' list of concerns 31

Figure 16: The UK SME market grew slightly to GBP7.8bn in 2017 34

Figure 17: Micro enterprises account for 61.6% of SME market GWP 36

Figure 18: Commercial vehicle premium hikes have been a key factor in overall market growth 37

Figure 19: Public liability insurance has consistently high penetration across all types of SME 38

Figure 20: Public liability is still the leading product, with both key man and cyber recording notable growth 43

Figure 21: SME insurance is set to see slow but steady growth up to 2022 45

List of Tables

Table 1: The number of SMEs in the UK private sector, by business size, 2010-17 8

Table 2: UK private enterprise volume, employment, employees, and turnover by business size, 2017 9

Table 3: UK GDP quarterly growth, 2009-Q2 2018 12

Table 4: The number of company registrations in the UK (000s), 2013-18 18

Table 5: Employers' minimum pension contribution, 2018-19 23

Table 6: The UK minimum wage by age group, 2010-18 26

Table 7: SMEs' top concerns, 2018 32

Table 8: UK SME GWP and annual growth by size of business, 2015-17 35

Table 9: Insurance penetration among surveyed SMEs, by industry, 2018 40

Table 10: SME insurance penetration rates by size of business, 2015-18 41

Table 11: Penetration rates by product line and size of business, changes from 2017 to 2018 42

Table 12: UK SME insurance market forecast, 2018e-22f 45

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License:
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

AXA

Aviva

Allianz

Hiscox

Zurich

Acturis

Slice

SME, sole trader, micro, small, medium, business, commercial, penetration, economy, growth, Brexit


Related Products in vertical
red-whiteline

RECENT VIEWED REPORTS



Sign up for newsletter

Close
Apply For Job

  • Applicant Name
  • Job Function
  • Total Experience
  • Skills
  • Email ID
  • Notice Period
  • Current CTC & Expected CTC
  • Phone Number
  • Validation
  • captcha  info-icon

    If validation code does not match, please refresh the page.

  • "Your resume has been successfully received. HR will connect you within 14 days in case your resume gets shortlisted."
Close
Download Company Brochure

  • Name
  • Email
  • Company Name
  • Select Country*
  • Phone Number
  • Validation
  •   info-icon

    If validation code does not match, please refresh the page.

Close
Engage With Us

  • Name
  • Designation
  • Email
  • Phone No.
  • Company Name
  • Company URL
  • Select Country*
  • Requirements/ Comments
  • Validation
  • captcha  info-icon

    If validation code does not match, please refresh the page.

  • "Thanks for submitting the form. The concerned team will respond to your query in the next 8-12 hours"
Close

Compare

Expand

person