LONDON, May 10, 2022 (GLOBE NEWSWIRE) — Digitalization and artificial intelligence are key drivers fueling the UK SME insurance market growth. Digitalization is a long-running theme in all forms of insurance and will become especially important post-COVID-19. Most insurers are making efforts to modernize their services by utilizing technology, as doing so is now essential to compete. When used well, AI and automation can set insurers apart. Profit margins are extremely tight in SME insurance, and these technologies can allow insurers to automate various parts of the insurance value chain to reduce operational costs.
The UK SME insurance market report sizes the market in 2021 and forecasts future gross written premiums until 2025. It analyzes the macroeconomic factors that influence the space. The report also uses our UK SME Insurance Survey data to analyze SMEs’ attitudes to insurance and the key factors impacting the market in 2021 and beyond.
UK SME Insurance Market Outlook
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- Packaged insurance policies are popular, particularly among small and medium businesses in the UK SME insurance market.
- Employers’ liability take-up dropped despite being a legal requirement.
- Business court interruption cases did not notably hurt SMEs’ trust in insurers.
- The UK insurtech started as a gig economy insurer, offering cheap and flexible driving and motorcycle insurance to Deliveroo drivers.
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Impact of COVID-19 on the UK SME Insurance Market
The number of SMEs declined in 2021 – the first reduction since 2018 and the largest in the past decade. The loss of business due to coronavirus remains SMEs’ biggest concern. Key products such as public and employers’ liability saw penetration rates drop considerably from 2019 to 2021 due to the COVID-19 pandemic.
The COVID-19 pandemic has had a significant impact on the market, with premiums hardening due to the increased risk and SMEs canceling products due to costs being squeezed. Brexit has also caused the cost of materials to rise and availability to decline, which has increased the cost of repairs across a range of products. These two factors contributed heavily to claims inflation, putting upward pressure on premiums. Insurers have been forced to put greater focus on digitalization since the outbreak of COVID-19, especially since face-to-face meetings have not always been possible. Customers now expect strong digital services – and insurers have needed to act quickly to address this shift.
To know more about the impact of COVID-19 on the UK SME Insurance Industry, download a free sample
UK SME Insurance Market Overview
|Market size 2020||GBP10.9 billion|
Reasons to Buy
- Learn about the significance of SMEs within the commercial insurance market and how they are influenced by the UK economy
- Identify the effects of COVID-19 on the UK SME insurance space
- Discover GlobalData’s forecasts for the market
- Recognize the challenges faced by UK SMEs
- Identify growth opportunities in the SME space
What was the UK SME insurance market size in the year 2020?
The SME insurance market size in the UK was valued at GBP10.9 billion in the year 2020.
What is the UK SME insurance market growth rate?
The SME insurance market in the UK is expected to grow at a CAGR of more than 4% during the forecast period.
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