PUBLISHER: GlobalData | PRODUCT CODE: 1494225
PUBLISHER: GlobalData | PRODUCT CODE: 1494225
UK Commercial Insurance Distribution 2024
This report discusses the distribution landscape of UK commercial insurance. Each channel is discussed in turn, with a particular focus on the broker channel, which dominates the space. Analysis of responses to GlobalData's 2024 UK Commercial Insurance Broker Survey offers insight into brokers' growth and digital transformation strategies going forward. The SME market is also discussed, with due consideration given to smaller businesses and their comparatively simple insurance needs. The report finishes by providing an outlook on the future of the distribution landscape, mentioning areas for brokers to develop, growth opportunities, and upcoming insurtech companies operating in the space.
Brokers held an 82.8% share of the UK commercial insurance market in 2023e, highlighting their dominance of the distribution landscape. Nonetheless, this is a slight decrease from the 83.1% market share they commanded in 2022. Additionally, we expect the direct channel to have increased its share of commercial insurance distribution from 7.5% in 2022 to 7.9% in 2023e, in part driven by technological advancements that enhance the online purchasing experience. GlobalData forecasts that brokers will continue to dominate the commercial insurance landscape, while the direct channel will increase its share of distribution over the forecast period. As businesses show increasing openness to utilizing apps and artificial intelligence (AI) for insurance management, commercial insurance providers should capitalize on this trend by incorporating such digital solutions into their service offerings.
Scope
- In 2023e, brokers wrote 82.8% of commercial insurance premiums, down 0.3 percentage points (pp) from 83.1% in 2022. Meanwhile, the direct channel accounted for 7.9% of commercial insurance in 2023e-up 0.4pp compared to 2022.
- The SME space is more competitive, with many micro and small-sized businesses utilizing the direct channel as well as price comparison websites (PCWs).
- Marsh remains the leading broker in the UK commercial insurance market, increasing its revenue by 15% from 2022 to 2023.
Reasons to Buy
- Identify the most frequently used channels to purchase commercial insurance
- Adapt your distribution strategy to cater to the changing needs of clients and intermediaries
- Learn how market leaders have strategized to achieve their success
- Understand the trends and themes set to transform the market in the future
Table of Contents
Table of Contents
1. Executive Summary
- 1.1 Market overview
- 1.2 Key findings
- 1.3 Critical success factors
2. Commercial Insurance Distribution Overview
- 2.1 Brokers dominated the commercial space in 2023e
3. The Broker Channel
- 3.1 The broker landscape is dominated by global firms
- 3.2 National brokers are more likely to employ a wide range of growth strategies compared to their smaller counterparts
- 3.3 National brokers are more likely to adopt extra services
- 3.4 National brokers are most concerned about tough macroeconomic conditions
4. Other Commercial Distribution Channels
- 4.1 The direct channel is an important distribution channel for commercial insurance
- 4.2 The banking channel is more popular among SMEs
5. The Distribution Landscape Going Forward
- 5.1 Brokers will continue to dominate commercial insurance
- 5.2 Commercial insurance distribution going forward
6. Appendix
- 6.1 Abbreviations, acronyms, and initialisms
- 6.2 Definitions
- 6.3 Methodology
- 6.4 Secondary sources
- 6.5 Further reading
- About GlobalData
- Contact Us
List of Tables
- Table 1: Growth strategies utilized by UK brokers, 2024
- Table 2: Selected banks and their insurance provider partners
List of Figures
- Figure 1: Brokers remain the dominant distribution channel for commercial insurance
- Figure 2: Brokers accounted for GBP31.1 billion in commercial lines GWP in 2023
- Figure 3: Brokers are not as dominant among SMEs
- Figure 4: SMEs favor online methods when purchasing insurance
- Figure 5: Marsh remains the market leader, with its revenue rising by 15% in 2023
- Figure 6: Cross-selling/upselling remains the most popular growth strategy
- Figure 7: Broker adoption of many service features remains low
- Figure 8: Provincial brokers are least likely to adopt new technologies into their service offering
- Figure 9: Super-regional brokers are increasingly adopting new service features in 2024
- Figure 10: National brokers are more likely to adopt additional service features than their smaller counterparts
- Figure 11: National brokers are most worried about the impact of the macroeconomic climate on their business
- Figure 12: Brokers suggest the volume of commercial GWP increased in 2023
- Figure 13: The direct channel will grow in popularity over the forecast period
- Figure 14: The majority of SMEs are open to using an insurance app
- Figure 15: The majority of SMEs are comfortable interacting with an AI-powered chatbot
- Figure 16: 51.7% of SMEs are comfortable with AI assessing their insurance needs and recommending the most suitable coverage options
