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United Kingdom Private Motor Insurance Market Report 2020 -
[February 17, 2021]

United Kingdom Private Motor Insurance Market Report 2020 -

The "United Kingdom (UK) Private Motor Insurance - Market Dynamics and Opportunities 2020" report has been added to's offering.

This report explores consumer purchasing behaviors in the private motor insurance space, as well as how consumer preferences are changing over time.

It identifies what is most influential to customers when purchasing a policy, and also reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

Gross written premiums (GWP) contracted in 2019. This was driven by decreases in both the number of policies sold and the average cost of premiums. The implications of COVID-19 have changed the way that consumers use their vehicles, creating a greater demand for usage-based insurance (UBI) products. COVID-19 has also postponed the highly anticipated Civil Liability Act until 2021.


  • Measured by GWP, the private motor insurance market was worth 13.0bn in 2019.
  • The leading trio remained unchanged, with Direct Line, Aviva, and LV= holding 32.2% of the market.
  • The cost of personal injury increased by 2.1%, reaching an average cost of 10,676 in 2019.
  • The private motor insurance market will expand to 15.5bn by 2024, representing a compound annual growth rate (CAGR) of 3.4% between 2019 and 2024.

Key Topics Covered:



2.1. The private motor insurance market contracted in 2019

2.1.1. Market GWP contracted by 1.2% to 13.0bn

2.2. Factors influencing premiums in 2019

2.2.1. Premiums have decreased since reaching an all-time high in 2017

2.2.2. The most recent Ogden rate change has been disputed by insurers

2.2.3. IPT remains frozen at 12%

2.2.4. Consumers continue to renew in the first quarters of the year

2.2.5. The FCA set out a new proposal to tackle issues with dual pricing

2.2.6. Fewer younger drivers on the roads drives up premiums for older demographics

2.27. The impact of COVID-19 on the cost of premiums

2.3. The motor claims landscape in 2019

2.3.1. Claims notified rose despite previous falls

2.3.2. Average claim costs continued to rise in 2019

2.3.3. Bodily injury claims

2.3.4. COVID-19 is expected to create claim inflation

2.4. Road traffic accidents (RTAs) and their link to claims

2.4.1. Fraudulent insurance claims remain an issue for motor insurance

2.4.2. Total RTAs continue to decline, as do the number of claims

2.4.3. Recorded casualties for car occupants continue to decline

2.4.4. Fuel cost plays less of a factor in miles driven

2.4.5. The UK motor parc decreased by 2% in 2019

2.4.6. The pay-as-you-go insurance opportunity grows as average mileage continues to fall


3.1. Direct Line is the market leader for motor insurance

3.1.1. The top five players make up 49.4% of the market share

3.2. Analysis of the market leaders

3.2.1. Direct Line stays competitive through partnerships

3.2.2. Aviva remains in second place

3.2.3. LV=

3.2.4. Munich Re entered the top five, with its GWP increasing by 41% in 2019

3.2.5. Admiral Group set market precedent during COVID-19

3.2.6. By Miles leads innovation for UBI


4.1. The future outlook for private motor insurance

4.1.1. The forecast for the next five years

4.1.2. Despite savings associated with COVID-19, claims will remain an issue for motor insurers

4.2. The Civil Liability Act aims to reform personal injury motor claims

4.2.1. COVID-19 has delayed the implementation of the Civil Liability Act

4.2.2. A further delay of the Act can have further implications for the industry

4.2.3. The Civil Liability Act targets two main areas of the personal injury claim process

4.3. Other factors will also contribute to a rise in premiums

4.3.1. Brexit could lead to a further rise in premiums

4.3.2. Younger generations are no longer interested in owning a vehicle

4.3.3. FCA's duel-pricing changes will lead to a further rise in premiums

4.4. Accelerated (News - Alert) adoption of usage-based, car sharing, and peer-to-peer (P2P) policies

4.4.1. COVID-19 has accelerated the adoption of usage-based, pay-as-you-go car insurance

4.5. Technology continues to reshape the motor insurance landscape

4.5.1. Telematics providers offer self-installation devices in light of COVID-19

4.5.2. Dashcams continue to play a role in the market

4.5.3. COVID-19 leads to further digitalization within motor insurance

4.6. Connected cars and smart roads will increase driver safety

4.6.1. Connected cars are the future of providing better insurance services

4.6.2. All new cars must have a speed limiter from 2022

4.7. The complexity of electric vehicle systems drives up premiums

4.8. Fully autonomous vehicles will disrupt the motor insurance landscape

4.8.1. Driverless cars are expected to be mainstream by 2045

4.8.2. The UK government continues to support the development of autonomous vehicles

4.8.3. The safety and testing of autonomous vehicles remain hazy

4.8.4. Propositions for how automated vehicles should be insured

4.8.5. Tesla sets market precedent for autonomous vehicle insurance

4.8.6. Technology challenges that still need to be overcome before autonomous vehicles hit the roads

4.8.7. Insurers need to be prepared for autonomous vehicles


Companies Mentioned

  • Direct Line
  • Aviva
  • Admiral
  • Ageas
  • LV=
  • Advantage
  • Munich Re
  • esure
  • AXA
  • Covea
  • By Miles
  • Metromile
  • Carvi
  • ThingCo
  • Tractable
  • Tesla
  • Marmalade

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