UK Property Insurance Claims 2007

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • Commercial property claims were benign in 2006, as a lack of any serious weather incidents kept claims numbers low
    • Commercial property claims costs resulting from fire, business interruption and weather damage all fell in 2006
    • Fire accounted for the majority of costs for commercial property claims in 2006
      • The number of commercial fires fell in 2006 across the UK
    • Weather claims costs for commercial property insurance declined in 2006
    • Business interruption claims costs, following fire and weather damage, fell in 2006
    • Theft claims costs increased in 2006
    • The increase in theft claims costs was due to a rise in average claims value in 2006
  • The household insurance market experienced a reduction in the cost of weather claims in 2006, but an increase in the cost of claims from other perils
    • The cost of domestic property claims fell slightly in 2006, as a result of a fall in weather related costs
    • Storm damage accounted for the largest part of the weather claims bill for household in 2006
    • The cost of domestic fire claims increased in 2006
    • The cost of household theft claims rose by 9.9 per cent in 2006 as both the number of claims and the average cost of claims increased
      • The number of burglaries fell by 3 per cent in 2005/6
      • The risk of burglary is heavily influenced by factors such as tenancy status and security measures
    • Subsidence claims costs grew in 2006 as did the average cost of claims
• APPENDIX
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Gross incurred commercial property insurance claims by peril, 2002-6
    • Table 2: Proportion of gross incurred commercial property insurance claims by peril, 2002-6
    • Table 3: Number of UK fires, by location, 2001-5
    • Table 4: Commercial property insurance weather claims costs, 2002-6
    • Table 5: Cost of business interruption claims by cause, 2002-6
    • Table 6: Total cost of commercial property insurance theft claims, 2002-6
    • Table 7: Number of commercial property theft claims, 2002-6
    • Table 8: Average value of commercial property theft claims, 2002-6
    • Table 9: Domestic property insurance claims by peril, 2002-6
    • Table 10: Gross claims incurred for domestic property weather claims, 2002-6
    • Table 11: Claims incurred by fire, domestic and total, 2002-6
    • Table 12: Number of household theft and average theft claims cost
    • Table 13: Number of burglaries in England and Wales, 1999-2006
    • Table 14: Unemployment among 18-24 year old males, 1998-2006
    • Table 15: Household types most at risk from burglary, 2004/5 - 2005/6
    • Table 16: Average subsidence claims cost compared to claims costs and number of claims for subsidence, 2002-6
  • List of Figures
    • Figure 1: Commercial fire, business interruption and weather property insurance claims costs fell in 2006
    • Figure 2: Fire claims continued to account for the largest part of commercial property claims costs in 2006
    • Figure 3: The number of commercial property fires fell in 2005
    • Figure 4: The cost of commercial property weather claims declined in 2006
    • Figure 5: Business interruption claims costs fell in 2006
    • Figure 6: 2006 saw a slight increase in the cost of commercial property insurance theft claims
    • Figure 7: 2006 saw a drop in the number of commercial property theft claims but an increase in the average value of claims
    • Figure 8: The total cost of domestic property claims fell slightly in 2006, as a result of a reduction in weather related claims
    • Figure 9: The cost of weather insurance claims fell in 2006 for domestic property
    • Figure 10: The cost of claims caused by fire grew in 2006 for domestic property
    • Figure 11: Both the number of theft claims and the average theft claims cost grew in 2006
    • Figure 12: Number of burglaries in England and Wales, 1999-2006
    • Figure 13: Homes with no security measures are at a very high risk of burglary; almost one in five was burgled in 2005/6
    • Figure 14: The cost of subsidence claims rose in 2006, while the average cost of subsidence claims increased only slightly