UK Personal lines, property
London market claims
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Ether IntroductionsInsurance Supply Chain Experts
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An overview of key trends, market dynamics, and the transformative impact of consolidation and technology in the UK insurance sector. 2025 Analysis.
The UK household insurance market demonstrates robust GWP growth, yet faces challenges from rising claims costs and consumer affordability. These core figures provide essential context for the sector’s current state and future trajectory.
£7.07B
UK Household Insurance GWP (2023)
£396
Avg. Home Insurance Price (Q2 2024)
16%
Avg. Payout Rise per Claim (Q2 2024)
Insurers have responded to rising claims and inflation by increasing premium rates across different policy types.
Data illustrates the percentage increase in premiums for combined, buildings-only, and contents-only policies during 2023, reflecting the industry’s adjustment to cost pressures.
Economic pressures are significantly influencing consumer behavior, leading to a notable protection gap and increased price sensitivity in the market.
A notable percentage of UK homes lack any form of home insurance, highlighting a critical protection gap that insurers and policymakers need to address.
Approximately 25% of UK households, equating to around 7 million homes, were uninsured in 2024.
17.9%
Policy Cancellations (2023)
Reflects consumers cancelling insurance, often due to the cost-of-living crisis.
64%
Shop Around at Renewal
Indicates high price sensitivity and proactive consumer behavior in seeking value.
Explore the major mergers and acquisitions that have shaped the UK insurance landscape. The timeline automatically scrolls, or you can drag it manually. Click on an event card for details.
The UK insurance market features several dominant players. Their scale, often reflective of past and ongoing M&A, is illustrated by their significant Gross Written Premiums or relevant revenue figures.
Figures represent group-level or specified segment premiums/revenue. Direct household GWP is often not separately disclosed, requiring inference from broader personal lines or general insurance data.
This chart showcases the scale of major insurers, highlighting their substantial market presence based on latest reported financials for relevant business segments.
Several interconnected factors are fueling the continuous evolution and consolidation within the UK insurance market. These drivers shape strategic decisions and the overall market structure.
Seeking cost reduction, better pricing power, and enhanced profitability through larger customer bases and diverse product offerings across various insurance lines.
Optimizing balance sheets, freeing up capital, and meeting evolving solvency requirements, especially under regulatory frameworks like Solvency UK.
Strengthening competitive positioning by acquiring competitors or exiting non-core segments to focus resources on areas of strategic advantage.
Acquiring insurtech capabilities or partnering to boost digital platforms, enhance customer experience, and leverage data analytics for better underwriting and service.
Adapting to evolving rules (e.g., FCA’s Consumer Duty, fair value assessments) which influence product design, pricing strategies, and operational efficiency.
Responding to rising claims costs from general inflation and an increasing frequency of weather-related events, prompting insurers to seek scale or divest high-risk portfolios.
The interplay of these drivers leads to a more concentrated market, impacts product offerings, influences innovation dynamics, and shapes the overall strategic direction of the UK insurance industry.
The UK household insurance market is set for continued transformation. Insurers must adapt to moderating premium growth, persistent climate risks, and the unceasing imperative for digital innovation to meet consumer expectations and regulatory demands.
Agility, strategic foresight, and a relentless focus on customer-centricity will be paramount for insurers to thrive. Continuous innovation in products, distribution, operational processes, and technology adoption will be key differentiators in this dynamic environment.
Demand and Supply Demand and supply has always influenced the price of a product or
Category Planning
Part of the move from a reactionary supply chain function to a proactive one is the need to have a detailed category plan for all spends.
We have an in depth knowledge of insurance claims spend categories covering the key suppliers, market conditions and performance. Working with your key stakeholders we are able to provide these plans. Just as importantly, can execute them too.
A key element of any plan is a full and detailed data analysis. Not just the basic measures at this stage though. This requires a deeper dive to draw out fresh insights over cost control and performance.
Data drives everything we do, informed by years of experience. We have a deep understanding of what supplier data is telling us and the knowledge base to know how to best use it.
Systems
Running everything on spreadsheets and shared files only works for so long. We have worked on multiple vendor management platforms and e-bidding tools and been part of delivery programmes to implement them.
When they are implemented properly these platforms take the headache out of renewals and compliance. When implemented poorly everyone does everything they can to avoid the platforms so its key to get it right. Once we have received the financial data covering spend we are able to build a picture of what you are spending and where.
We have no links to any systems or platforms, nor any preferences. Each client will have different needs and levels of usage which will dictate the most appropriate systems to be employed.
On behalf of a major UK bank we undertook a complete market review of the packaged account provider.
We designed a and issued an RFP and launched a full blown tender process to ensure that the banks customers received value for money. We were able to identify and recommend a new provider and a transformation project launched to move from the incumbent to the new provider.
The premium high net worth bank asked us to run a market review to ensure that the best customer value was being realised for their premium product lines.
A through market review across multiple brand identities was launched in conjunction with multiple highly involved stakeholders.
Renegotiation of terms and conditions were concluded with all parties very satisfied.
In many ways the standard travel product is the easy bit. The upgrades (voluntary) and medical conditions (prescribed) are the hard bit.
Working with third party medical assessment providers we were able to navigate our client through industry applied scoring to ensure that we could provide a continuation of cover even with a change of provider.
On behalf of a major global insurer we have designed the repairer strategy, tendered to the market and implemented a new repair solution.
Using multiple data points and sources with target average repair costs we were able to rationalise a network and make operational improvements with target cost deductions achieved. As importantly, we have significantly improved customer service metrics.
We have renegotiated multiple glass deals over the years. Because of the nature of fixed unit price deals, a change in book can leave the insurer at a considerable disadvantage. Coupled with rising costs and inflation we believe it is often a requirement to review commercial deals more regularly than previously done.
Changing technology has also led to the requirement for multiple supplier panels which we have successfully implemented.
Sometimes it’s not just changing the supplier that is required, but the entire process.
And the supplier.
Working with a motor client we completely redesigned the salvage process Starting with when the agent was deployed, to onsite engineering led categorisation, inside storage, and then the auction process.
Not only was the final product exemplary from a compliance standpoint, but returns back to the client were also improved.
Negotiating parts and paint on behalf of a large retail insurer.
Using multiple data points from within the business we were able to renegotiate commercial deals to reflect a growing and changing book of business and make it as future proof as we could.
Having previously worked for contents providers we are uniquely placed to provide insight and strategy for insurers when it comes to contents spend.
Claims IT in motor was delivered as a programme of works to consolidate outdated technology deals and combat a complex pricing structure that saw overlapping charges at multiple points.
Similarly a consolation of legal firms and introduction of more fixed menu pricing created sizable savings.
One of our clients had a professional services contract in place with a clear billing
From being a loss adjuster out in the field we’ve moved to managing teams and then entire loss adjusting panels. We have extensive data on fee bandings, outcomes and indemnity spend.
We are able to audit panel performance on a case by case basis, covering technical application as well as commercial considerations.
We also have a tried and tested methodology for getting the best performance out of loss adjusting firms.
Having previously run repair networks on behalf of insurer clients this has given us a real hands-on knowledge of how to build a repair strategy for insurers.
We have in depth experience of the eco system of building repairs, covering drying, surveying, restoration, asbestos and restoration. We have set insurer strategies and deployed best of breed solutions.
Either as a stand alone product, a bolt on to a main domestic policy or as a value added cover to the main terms, we have expensive experience in undertaken market reviews of home emergency propositions.
We have previously run multiple audits on performance and then strategic reviews of insurers home emergency propositions.
Having previously worked for contents providers we are uniquely placed to provide insight and strategy for insurers when it comes to contents spend.
We have created and delivered strategies for multiple clients for their contents spend. Primarily we focus on validation, repair and then replacement solutions in order to manage indemnity spend.
Main contents items are flooring, jewellery electrical goods and bikes.
In addition to the main commodities, a complete property supply chain requires a lot more additional services. We have led strategies and tenders for all of them.
Suppliers will typically cover the following;
Glazing services, alternative accommodation, drainage solutions, asbestos testing and removal, garden items, DIY kit, weather validation and prediction services, fraud detection and forensics.
“One of the best tenders we’ve ever experienced; the projected volumes were accurate and the
Continue readingRFP & RFI – The Joys of Tender pt 2 – Writing them
