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UK SME Insurance: Competitor Dynamics 2017

Published By :

GlobalData

Published Date : Oct 2017

Category :

Insurance

No. of Pages : N/A

UK SME Insurance: Competitor Dynamics 2017

Summary

"UK SME Insurance: Competitor Dynamics 2017", looks at which insurers lead the way in the SME segment and how they are developing their propositions, as well as highlighting how competitor positions vary between micro, small, and medium enterprises. It examines which insurers are winning over brokers and which companies SMEs are placing their business with.

AXA and Aviva dominate the SME insurance space across the vast majority of the 16 commercial products listed in our 2017 UK SME Insurance Survey. Other insurers present in the market play to their strengths when servicing SMEs. Hiscox and Zurich are popular providers for liability products, while Allianz and Direct Line are strong in commercial motor. The main story from the 2017 results is of AXAs lead narrowing. While Avivas share also fell, the margin in market shares between the two has reduced in the vast majority of the nine lines that AXA and Aviva place first and second respectively.

Scope

- AXA and Aviva lead the SME insurance space, with 13.9% and 11.3% of SMEs respectively holding a commercial insurance policy with these providers.
- AXA remains dominant across the 16 product lines, but Aviva is closing the gap.
- Brokers place the most SME business with Allianz, Aviva, and AXA.

Reasons to buy

- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Adapt your distribution strategy to ensure it is efficient and still meets customer purchasing behavior.
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. AXA and Aviva continue to lead the market 2
1.2. Key findings 2
1.3. Critical success factors 2
2. THE SME MARKET AND ITS LEADING COMPETITORS 7
2.1. Introduction 7
2.2. Allianz and Aviva continue to lead the way for brokers 7
2.3. Avivas dominance in non-packaged insurance has been challenged 9
2.4. The increasing focus on cybercrime is an opportunity for insurers 11
2.4.1. Some insurers are looking to innovate to gain an edge in a tough market 11
2.5. The key players 12
2.5.1. AXA is looking into its commercial motor offering 12
2.5.2. Aviva revamps cyber cover 13
2.5.3. Allianz focuses on Brexit 13
2.5.4. Hiscox embraces technology 13
2.5.5. Zurich targets education 13
2.6. Technology is emerging in the market 14
2.6.1. New entrants are rare, but the Financial Conduct Authority sandbox is showing promise 15
3. PRODUCT POSITIONING 16
3.1. AXA is the dominant insurer, but Aviva is closing the gap 16
3.1.1. Aviva performs well in commercial motor lines, while Allianz is popular with larger SMEs 17
3.1.2. Hiscox is popular in non-motor lines 18
3.1.3. Direct Line remains strong in motor lines 19
3.1.4. NFU Mutual is strong in niche commercial motor lines 19
4. NPS 37
4.1. Hiscox has the edge in customer satisfaction 37
5. APPENDIX 41
5.1. Abbreviations and acronyms 41
5.2. SME 41
5.3. Methodology 42
5.3.1. GlobalDatas 2017 UK SME Insurance Survey 42
5.3.2. GlobalDatas 2017 UK Commercial Broker Survey 42
5.4. Bibliography 42

List of Tables
Table 1: Market share of packaged SME insurance, 2013-17 9
Table 2: Market share of non-packaged SME insurance, 2013-17 10
Table 3: Full breakdown of the leading five insurers across all lines, 2017 20
Table 4: Top five insurers for business interruption insurance, 2017 21
Table 5: Top five insurers for directors and officers insurance, 2017 22
Table 6: Top five insurers for employers liability insurance, 2017 23
Table 7: Top five insurers for key man insurance, 2017 24
Table 8: Top five insurers for personal accident and business travel insurance, 2017 25
Table 9: Top five insurers for property insurance, 2017 26
Table 10: Top five insurers for professional indemnity insurance, 2017 27
Table 11: Top five insurers for public liability insurance, 2017 28
Table 12: Top five insurers for private medical insurance, 2017 29
Table 13: Top five insurers for cyber insurance, 2017 30
Table 14: Top five insurers for commercial motor: company car (single), 2017 31
Table 15: Top five insurers for commercial motor: company car (fleet), 2017 32
Table 16: Top five insurers for commercial motor: van (single), 2017 33
Table 17: Top five insurers for commercial motor: van (fleet), 2017 34
Table 18: Top five insurers for other commercial motor e.g. coaches/farm vehicles (single), 2017 35
Table 19: Top five insurers for other commercial motor e.g. coaches/ farm vehicles (fleet), 2017 36
Table 20: Customer satisfaction among leading insurers in selected lines, 2017 39
Table 21: Leading insurers NPS for selected lines, 2017 40

List of Figures
Figure 1: Allianz continues to lead Aviva in terms of broker preference for packaged SME insurance 8
Figure 2: Aviva leads the way in non-packaged SME insurance 10
Figure 3: AXA leads the way in more than half of SME insurance lines 14
Figure 4: AXA remains the leading insurer, while Hiscox has overtaken Zurich 17
Figure 5: AXA leads the way for business interruption insurance 21
Figure 6: AXA still leads the way for directors and officers liability, but Aviva has closed the gap 22
Figure 7: Hiscox has climbed to third place in employers liability, overtaking Allianz 23
Figure 8: Aviva has eaten into AXAs lead, with the top two remaining dominant in key man insurance 24
Figure 9: Aviva, Allianz, and Zurich have reduced AXAs lead in personal accident and business travel 25
Figure 10: Allianz has overtaken Zurich in property insurance 26
Figure 11: Hiscox is very competitive in the professional indemnity market 27
Figure 12: Little change has been witnessed among the top three public liability insurers 28
Figure 13: Despite AXAs gains, Bupas lead in private medical remains substantial 29
Figure 14: Allianz and AA displaced AIG and Zurich in the cyber insurance top five 30
Figure 15: Aviva has pulled away from AXA in single car insurance 31
Figure 16: Aviva has drawn level with AXA in company car fleet insurance 32
Figure 17: AA entered the top three for single van insurance 33
Figure 18: Aviva leads van fleet insurance, with Admiral entering the top five 34
Figure 19: Aviva now leads in single coaches and farm vehicles insurance 35
Figure 20: NFU Mutual jumped to first place for fleet coaches and farm vehicles 36
Figure 21: Hiscox receives positive feedback from customers, while AXA is heavily criticized 38
Figure 22: AXA and Allianz are struggling to keep customers happy 40

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