United Kingdom (UK) Employers’ Liability Insurance Market Trends, Competitor Dynamics and Opportunities
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This report tracks the health and shape of the employers’ liability market – taking into account market size, profitability, performance ratios, and the claims environment. The UK’s economic growth, business landscape, and cost-of-living crisis are all taken into consideration to build a full picture of this space. Key shifts in the market and likely future changes are analyzed for impact across all relevant stakeholders.
The employers’ liability market is expected to grow by 9.2% in 2023, following strong growth of 25.6% in 2022. The increase in 2023 can be ascribed to rising premiums brought on by inflationary pressures and rising claim costs. The current economic conditions, which are marked by high rates of interest and inflation, have increased the expenses associated with conducting business. Along with the current recession the UK has entered, this may cause the unemployment rate to increase, hence having an impact on the employers’ liability market. The market is directly reliant on the number of businesses and employees in the UK, so this will have a negative impact on premiums. With the average cost of claims increasing, insurers will have to keep an eye on their pricing to ensure they do not lose out and maintain a strong underwriting profit. GlobalData forecasts GWP to reach GBP2.16 million by 2027.
UK Employers Liability Insurance Market Dynamics
Employers’ liability GWP increased in 2021, retaining strong underwriting profit and resulting in a positive year for insurers. COVID-19 has had a significant impact on businesses in the UK, both in terms of the number of enterprises and how they can function. Further impacts that the pandemic had on the employers’ liability market were the changes to working models, as well as the furlough scheme, which ended in September 2021. The scheme supported the employers’ liability market by allowing companies to keep their employees; as employers’ liability premiums are directly related to payroll, this allowed for GWP growth in 2021.
Furthermore, the Civil Liability Act has been put into effect following disruptions due to COVID-19. The Civil Liability Act 2021 is expected to lower the overall cost of claims for businesses while making it more difficult for claimants to bring successful claims against employers. It is crucial to remember that the Act is still very new, therefore its entire impact on employers’ liability claims has not yet been determined.
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UK Employers Liability Insurance Market – Competitive Landscape
The leading players in the UK employers liability insurance market are Chubb, AIG, AXA, Aviva, Zurich, Allianz, QBE, Berkshire Hathaway, Hiscox, and RSA. Chubb became the new leader of the general liability market in the UK in 2021. New technologies are enabling more creative and effective business practices in this age of digitization. Chubb has focused efforts on improving functionality and broadening the selection of products available through its eTrade platforms, making it easier for clients to attain insurance. It has also made investments in technology to enhance its offerings as well as the customer experience from end to end.
UK Employers Liability Insurance Market Analysis by Companies, 2021 (%)
For additional information on the UK employers liability insurance market-leading players, download a free report sample
Scope
• The employers’ liability market is expected to grow by 9.2% in 2023, with GWP growing to GBP2.08 billion.
• The market experienced a good underwriting profit of GBP68 million in 2022, despite gross claims incurred increasing by 53.9% to GBP1.07 billion.
• The average claims cost increased significantly, rising by 70.2% from 2021 to a 10-year high of GBP18,682 in 2022.
• With a 9.1% market share, Aviva emerges as the top employers’ liability insurance provider in the SME sector, trailed by AXA (5.5%) and Zurich (4.8%).
Reasons to Buy
• Understand the context of the UK’s economic growth and business landscape in relation to the employers’ liability insurance market.
• Determine key announcements, shifts in the market, and likely future changes relevant to all stakeholders.
• Review your strategy against both existing and new challenges in this market.
• Benchmark yourself against the market’s experience of market size, growth, performance, and the claims environment.
AIG
Zurich
Aviva
AXA
Allianz
QBE
RSA
Berkshire Hathaway
Hiscox
LV=
Simply Business
Lloyds Bank
Direct Line
NFU Mutual
Zego
Dinghy
Uber
Deliveroo
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Frequently asked questions
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What was the UK employers liability insurance market size in 2022?
The UK employers liability insurance market size was GBP1.64 billion in 2022.
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Which are the leading players in the UK employers liability insurance market?
Chubb, AIG, AXA, Aviva, Zurich, Allianz, QBE, Berkshire Hathaway, Hiscox, and RSA
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What does Civil Liability Act 2021 involve?
The Civil Liability Act 2021 is expected to lower the overall cost of claims for businesses while making it more difficult for claimants to bring successful claims against employers. It is crucial to remember that the Act is still very new, therefore its entire impact on employers’ liability claims has not yet been determined.
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