Category Procurement

UK Insurance Market: Trends & Consolidation

UK Insurance Market: Trends & Consolidation

An overview of key trends, market dynamics, and the transformative impact of consolidation and technology in the UK insurance sector. 2025 Analysis.

Market Overview & Key Metrics

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)

Premium Increases (2023)

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.

Consumer Insights & Challenges

Economic pressures are significantly influencing consumer behavior, leading to a notable protection gap and increased price sensitivity in the market.

Uninsured Households (2024)

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.

The Consolidation Wave: An Interactive Timeline

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.

1985

Event Details:

Key Players & Strategic Shifts

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.

Leading Insurers by Relevant GWP/Revenue (2024)

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.

Driving Forces of Change & Consolidation

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.

Economies of Scale & Scope

Seeking cost reduction, better pricing power, and enhanced profitability through larger customer bases and diverse product offerings across various insurance lines.

Capital Efficiency

Optimizing balance sheets, freeing up capital, and meeting evolving solvency requirements, especially under regulatory frameworks like Solvency UK.

Market Share Consolidation

Strengthening competitive positioning by acquiring competitors or exiting non-core segments to focus resources on areas of strategic advantage.

Technological Advancements

Acquiring insurtech capabilities or partnering to boost digital platforms, enhance customer experience, and leverage data analytics for better underwriting and service.

Regulatory Pressures

Adapting to evolving rules (e.g., FCA’s Consumer Duty, fair value assessments) which influence product design, pricing strategies, and operational efficiency.

Claims Inflation & Catastrophes

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.

Future Outlook: Navigating an Evolving Landscape

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.

Key Anticipated Trends

  • Potential moderation in premium growth rates through 2025 as inflationary pressures may ease.
  • Continued significant impact of extreme weather events on claims frequency and severity.
  • Growing consumer demand for comprehensive coverage, including emerging risks like cyber threats.
  • Increased adoption and integration of AI, advanced data analytics, and smart home technology by insurers.

Challenges & Opportunities

  • Balancing policy affordability for consumers with the need for profitability amid sustained cost pressures.
  • Meeting and evidencing compliance with evolving regulatory demands, particularly Consumer Duty and fair value.
  • Tapping into the considerable uninsured and underinsured household segments with tailored and accessible products.
  • Leveraging technology not just for efficiency, but for deeper customer personalization and proactive risk mitigation.
  • Enhancing end-to-end customer service and claims experiences to foster loyalty in a competitive market.

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.

© 2025 UK Insurance Market Insights. Infographic based on Ether Introductions and Deep Research Report Analysis.

Simply put, we specialise in dealing with Insurance Claims Supply Chains. We have experience at all stages of a functions journey, from very beginning to highly evolved and add value at each level.

When working with Insurance Companies we typically find that there are five main stages of maturity of the claims supply chain. Each stage requires a different approach in order to maximise return on investment for the client.

That said, these stages and our approach is indicative of what activity is required and what the likely outcomes will be.

Each client is different, with unique requirements and expectations.

There is no generic approach, only the application of experience and expertise within insurance claims procurement.

STAGE ONE – GREEN FIELD SITE

  • No dedicated supply or insurance claims procurement staff
  • Total supplier spend not known
  • Rates sometimes recorded
  • No formal panel
  • Few if any signed contracts
  • Ad-hoc MI
  • Claims experts not vendor experts

If this describes your company, click here

STAGE TWO – STARTING ON THE JOURNEY

  • Individuals allocated to vendor management as part of wider duties
  • Formal panel exists
  • Annual spend is known
  • Semi-regular MI received from vendors
  • Some contracts in place

If this describes your company, click here

STAGE THREE – GOOD FOUNDATIONS

  • Dedicated Supply Chain and Procurement Teams
  • All vendors on client based contracts
  • MI received monthly in client format
  • Spend data is matched to client not vendor view
  • Claims audit regime in place
  • Formal review of SLA’s and performance

If this describes your company, click here

STAGE FOUR – MATURE FUNCTION

  • Vendor management and bidding software utilised
  • Contract management automated
  • MI and data sets absorbed into central data base for analysis
  • Audit scores (performance, compliance and ESG) centralised and monitored
  • Extensive category plans in place

If this describes your company, click here

STAGE FIVE – HIGHLY ADVANCED

  • Claims supply chain “Eco-system” is all connected and automated
  • Real time data feed and analytics
  • Predictive tools in place to feed into pricing and other areas of the business
  • Surge resilience adaptability
  • Real time measurements of capacity and failure points
  • Performance based work allocation in real time

If this describes your company, click here

You only know what you know. No matter how mature your claims supply chain function might be, you can never been 100% sure that you are getting the best deal. We have multiple data sets that form part of our benchmarking analysis service. Contact us or book a meeting for more details.

Examples of our data sets


PROPERTY REPAIRS

Builders and surveyors

We have full data sets covering the fees incurred, the claims outcome (fulfilled, cashed, zero settlement) and the final indemnity spend for surveyors.

For building repairs we have regional indemnity averages, national indemnity averages and claims management fees comparisons.

Contact us for more details

Loss Adjusters

Domestic and Commercial

At our disposal is a full set of fee data covering various claims types at every value banding.

Of course fees are only one aspect of a loss adjusters output and we have adherence to fee scale data as well as the all important average indemnity controls.

Contact us for more details

Third Party Administrators

UK and USA

Covering UK, USA and some other territories, we have an extensive data set on TPA’s.

Fees, conversions to Loss Adjusters, indemnity controls and claims outcomes are all covered. We also have data on low value claims as well as more complex and specialist claims.

Contact us for more details

LEGAL RATES

Global

Over the years we have built up a comprehensive set of legal rates covering most territories around the globe.

These are split by individual hourly rates according to seniority, by type of matter, and by the location the services would be provided.

Contact us for more details

Overall claims performance

Loss ratios to target operating models

Multiple data points covering the key metrics which provide valuable insights into how an insurance book of business is performing.

Our insights cover loss ratios, elapsed days from FNOL to closure, reopening rates, claims outcomes, average and total indemnity spend.

Contact us for more details

Irrespective of which class of insurance business you might be managing, there are consistent themes relevant to all that are helpful to bear in mind. With years of experience and a track record of delivery, we know what these are.

◉ Never just look at the fees. Your claims indemnity is always more important.
◉ Supplier behaviour is usually more important than the commercials put in place.
◉ Create an environment where good performance is commercially rewarded.


It also really helps if you are able to understand the procurement / supply chain process AND the insurance claims process. This is where we excel.

PROPERTY CLAIMS

Hands on claims experience

We have managed claims, claims teams, repair networks, built contents supply chains, created TPA functions, and run loss adjuster panels. This has been done this as a supplier to the industry and on behalf of global insurers. We undertook a full review of the primary UK Third Party Administrator (TPA) followed by an in depth file review audit.

More Details

MOTOR CLAIMS

Extensive industry experience

We have re-engineered repair network processes, implemented IT projects and claims functions, reimagined salvage provision, and negotiated multiple ancillary product line deals o behalf of multiple insurers. We found multiple legal firms being deployed across multiple classes of business with inevitable scope creep.

More Details

TRAVEL

Largest UK bank

We have run a full blown multi year, multi product travel insurance tender. Starting from mapping out all requirements to the final implementation of a new provider. Here we worked with a very talented Cyber team who had in-depth knowledge a crystal clear vision of what the output needed to look like.

More Detail

LONDON MARKET

Top 5 syndicate

We have run tenders and managed all manner of suppliers across all classes of business within a leading Lloyds of London syndicate. We ran a formal process to find an outsourced claims solution to take low value and run off claims following an acquisition.

More Detail

Consultancy experience gained from working for one of the leading Lloyd’s syndicates across multiple classes of business.

PROPERTY TPA’S

Procurement and management

We undertook a full review of the primary UK Third Party Administrator (TPA) followed by an in depth file review audit.

As a result, self serving behaviours from the supplier were identified which were leading to indemnity leakage. New commercial arrangements agreed to reflect a more optimum claims process which lead to substantial savings.

Similarly a data audit of the North American TPA’s showed that sub optimum claims processes were being implemented with an over reliance on use of Loss Adjusters. Revised processes and commercials were negotiated which again led to significant claims cost savings.

LEGAL MATTER MANAGEMENT

Design, consolidation and implementation

We found multiple legal firms being deployed across multiple classes of business with inevitable scope creep.

Once we had established the true spend by firm, we set about rationalising the panel based on performance metrics. Once this was achieved, we designed and implemented a set of billing protocols which each firm had to sign up to.

Finally we engaged with a legal matter management software provider who were able to actively apply the billing protocols and rates agreed on a matter by matter basis.

CYBER INCIDENT RESPONSE

Procurement and negotiation

Here we worked with a very talented Cyber team who had in-depth knowledge a crystal clear vision of what the output needed to look like.

Whilst we often lead claims procurement projects due to our extensive knowledge, there are occasions where we immediately recognise we need to adopt a background supporting role. This was one of those occassions.

We provided procurement and negotiation support on a full blown RFI/RFP covering Incident Management, legal services, IT Forensics, Public Relations and other related IT providers.

LOW VALUE AND RUN OFF CLAIMS

Procurement and implementation

We ran a formal process to find an outsourced claims solution to take low value and run off claims following an acquisition.

Each provider had very different pricing models that could not be changed and therefore we created a complex data analysis tool to be able to accurately compare costs and benchmark against internal operational costs.

SUPPLIER PERFORMANCE MANAGEMENT

Process design and application

We provided the performance management blueprint for claims supplier management so that different classes of business were able to proactively manage claims suppliers.

By applying this model as well and commercial improvement methods, savings were soon realised on claims spend.

With backgrounds covering loss adjusting, building repair networks, supply chain management and auditing, we have unparalleled experience in insurance property supply chains.

LOSS ADJUSTERS

Sourcing and management

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.

BUILDING REPAIRS

Strategy and deployment

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.

HOME EMERGENCY

Sourcing and procurement

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.

CONTENTS

Design and implementation

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.

ALL OTHER SERVICES

Supply chain management

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.