Abstract
Overview
Introduction
This report provides a comprehensive analysis of the commercial property
insurance market in the UK. It looks at the size of the market, claims costs
and the main market trends. It also includes forecasts of the size of the
market and the profitability of the market up until 2012.
Scope
- In-depth analysis of GWP and the underwriting result for the commercial
property insurance market
- Data on the key drivers of claims inflation
- Three different scenarios looking at the future prospects for premium
income and claims inflation until 2012.
Highlights
Intense competition in the commercial property market saw GWP continue on its
downward trajectory. It shed a further 7.1% off its 2006 level falling to £4.6
billion. After three consecutive years of decline, the market looks on the
verge of turning the corner, with increased underwriting discipline set to
return to the market.
Following a fall in claims costs in 2006, largely as a result of benign
weather conditions, windstorm Kyrill and the summer floods of 2007 were the
chief contributors towards an upward spike in the cost of commercial property
claims from weather-related incidents.
The increase in business interruption costs in 2007 came largely as a result
of weather damage. After falling by 57% in 2006, claims costs following
weather damage increased by 730% from £20m to £166m, in 2007.
Reasons to Purchase
- Gain a deeper insight into key trends in the UK commercial property market
- Develop a greater understanding of the key drivers of claims inflation
- Provides three different future market scenarios
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