The latest addition to Key Note’s range of reports is a Market Report entitled Insurance Industry. The 2012 report provides an overview of the insurance market across the UK, examining the profitability of the market for insurance as well as looking at trends within premium rates. The report splits the market into two main sectors: general insurance and long-term insurance.
Insurance companies are an incredibly important part of the UK economy, contributing a significant amount to total economic output as part of the financial services sector. However, despite this, the market has suffered as a result of the recession. This is especially true of the market for long-term insurance, which has been hit hard by the downfall. Occupational pensions, which make up a large percentage of the market, have contracted considerably since the recession hit thanks, in part, to high levels of unemployment and enmasse redundancies. This trend has been a large contributing factor to the long-term insurance sector declining by 41.5% between 2007 and 2011.
Despite suffering declines between 2007 and 2009, the general insurance market returned to growth in 2010. Key Note is predicting further growth in 2011, when the sector is predicted to grow by 3.2% on the previous year, as the rising costs of motor insurance provide a much-needed boost to the market. General liability insurance and property insurance declined over the review period.
In the coming years, Key Note is predicting a year-on-year growth, with overall growth expected to reach 11.6% between 2012 and 2016, taking the UK insurance market to an estimated value of £166.75bn by 2016.
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