Dallas, ReportsandReports Announce it Will Carry The UK High Value Home Insurance 2010 Market Research Report in its Store.
Browse the complete Report on: http://www.reportsandreports.com/market-reports/uk-high-value-home-insurance-2010/
Introduction UK High Value Home Insurance 2010 presents a detailed examination of the high value home insurance market. It contains an analysis of the current state of the market by looking at total market growth, profitability, claims, competitive forces and a forecast for the total number of UK affluents and the total market in gross written premiums.
Scope Information and data on the attractiveness of the UK high value home insurance market Data on historical and forecasted numbers of UK affluents. An insight into affluent purchasing trends, preferences and investment strategies.
Highlights Datamonitor has estimated that there were 661,000 high value home insurance policies in force in 2009. Around 531,000 of these policies were for mid net worth individuals and 58,000 for high net worths. This market is plagued by large losses which are largely weather or escape of water related (for all household claims, escape of water accounted for 35% of the total claims bill). In a non-event yearwhere there are no large losses caused by a weather eventthe market combined operating ratio (COR) should be around 90%. A recurring theme that emerged throughout primary interviews was that less complex risks will continue to see a move towards direct distribution because it is easier to underwrite for these types of risks. However, clients with complex risks will continue to use brokers which can tailor a bespoke policy.
Reasons to Purchase Understand how high value home insurance players view this market at present. Get to grips with the size of the market and how it is anticipated to grow in the future. Realize how distribution of high value home insurance policies will change based on different purchasing patterns.
Overview 1 Catalyst 1 Summary 1 Executive Summary 2 Recent market growth has been driven by increased penetration and various rate increases 2 Underinsurance is still a big issue for this market 2 Some enhanced standard home insurance policies are taking business away from the specialist sector 2 With the numbers of affluents expected to grow in the future, there is plenty of new business to be won 2 Insurers can make good returns from high value home insurance 2 A typical non-event year should produce a combined ratio of 90% 2 The threat of new entrants coming into the higher end of the market is low 3 Some players are increasing rates in order to improve underwriting profits 3 The future of the high value sector will be characterized by divergence in distribution 3 MNW home insurance policies are likely to be sold direct while HNWs will continue to use brokers 3 The total market will see moderate growth as a result of new business generation 3 Table of Contents 4 Table of Figures 5 Table of Tables 6 Market Context 7 Introduction 7 High value home insurance products offer superior service and wide coverage 7 Wealthy individuals need enhanced insurance protection due to their greater value of assets 7 There is no industry-wide definition of MNW and HNW individuals 7 Segmenting MNW and HNW customers is vital for targeting new business 7 Most high value policies available on the market start from 50,000 contents sums insured 9 The total market continues to grow despite the downturn 10 The UK high value home insurance market is estimated to be worth 574m in gross written premiums 10 Datamonitor estimates that there were 589,000 high value policies in force during 2009, up by 1.9% on 2008 11 The total potential market could be worth anything up to 1.9 billion in GWP 11 Penetration is increasing, albeit at a slowing rate, but underinsurance still plagues this market 11 Greater direct advertising, cross-selling, appraisals and partnerships will help improve penetration 11 Hiscox is the only insurer which has a high profile, high value home insurance advertising campaign 12 Enhanced standard home insurance policies are a threat to the MNW market 13 Customers, especially MNW individuals, are becoming increasingly price-sensitive 14 Providers need to promote the benefits of high value products to prevent business being lost to enhanced standard home insurance policies 14 The number of wealthy individuals grew in 2009 by 8.1% to reach 8.2 million 14 Most high net worth individuals are aged between 31 and 50 16 A large number of affluents are moving their investments back into equities 17 Art, gold and collectibles have also become popular investments 18 Insurers can make good returns from high value home insurance 19 HNW risks are more profitable than MNW 19 Insurers can generate attractive returns in the high value home insurance sector 19 Underwriting is becoming more rigorous in order to select the most profitable risks 21 Rate increases by a number of insurers may become the norm for the next year or two 21 There are significant barriers to entry in this market, especially for HNW and UHNW offerings 22 Escape of water continues to be the number one cause of claims 22 Escape of water claims accounted for 35% of all household claims during the first three quarters of 2009 23 The latest crime statistics show a modest rise in cheque and credit card fraud which may influence claims 24 Some HNW insurers are noticing a marginal rise of aggravated burglary against their clients 26 Home & Legacy has partnered with SmartWater in a bid to deter theft-related crime 26 Many believe that insurers need to invest more into improving the claims service 26 The market for loss recovery specialists is growing due to the strong emphasis on claims service quality 26 The threat of inflation throughout 2010 will raise contents claims costs 27 The Floods and Water Management Bill is becoming closer to reality, which should help lower claims costs 28 Distribution 30 Introduction 30 Brokers are the principle route to market for MNW and HNW home insurance products 30 National and regional brokers are the most important distribution channel 30 The majority of mass market household insurance policies are distributed by banks and building societies 30 Affinity partnerships, often with retail banks, are a popular route to market 30 Call centers are a useful way of dealing with clients queries and MNW product distribution 31 The broker channel is at risk of losing commoditized MNW business to direct insurers 31 Market sentiment is that MNW risks are far easier to sell direct compared to HNW and UHNW clients 31 Direct online offerings are important for attracting the next generation of emerging affluents 31 However, younger individuals are more likely to switch insurance provider 31 Price comparison websites are a way of capturing data that can be used to sell MNW policies online 32 To prevent becoming obsolete in the MNW market, brokers need to work closer with insurers 33 Some have argued that insurers should provide brokers with better resources, although this is unlikely 33 Brokers should aim to target commercial accounts in order to retain and grow business 34 Better client relationship management will undoubtedly help improve client retention 34 Insurers may purchase brokers instead of investing into a direct offering 35 Competitive Dynamics 36 Introduction 36 Most policies available on the market are tailored towards MNW individuals 36 Chubb and Hiscox are the market leaders in the high value home insurance market 38 Both Chubb and Hiscox have sustained their positions as the two largest underwriters 38 Hiscox underwrites high value home insurance via its 505 and 606 policy schedules 38 Chubbs Masterpiece home insurance product range offers a wide range of features and benefits 39 The remainder of the market is characterized by insurers of smaller but similar respective sizes 39 Sterling is one of few MNW and HNW specialist insurers in the market 40 Chartis has significantly expanded its presence in this market since entering back in 2003 40 The market as a whole is characterized by composites and specialist insurers 41 Numerous different regional and national brokers exist in this market 42 2009 saw many new deals and competitor developments 43 Providers are constantly innovating and looking for new business opportunities 43 Synergy Private Clients entered the market in late 2008 43 Fortis is making moves to expand its presence in the MNW market 43 Marsh acquired HSBC Insurance Brokers in December 2009 43 Oak and Plum Underwriting have partnered to offer brokers a full range of MNW and HNW cover 44 Home & Legacy launched three new household insurance products early in 2009 44 Home & Legacy is now on the panel for the broker network Keychoice 44 MNW quote and buy facilities are becoming increasingly popular in order to speed up underwriting 44 Home & Legacy now offers online quote and buy for its MNW clients 45 Plum Underwriting currently provide an online quote and buy facility for brokers to access Lloyds capacity 45 Chubbs new broker website Masterpiece24 provides brokers with a quote and bind system for HNW cover 45 Castle Cover launched a new HNW website called Regal Insurance which offers online purchasing 45 The Future Decoded 47 The MNW and HNW market will experience a divergence in distribution and premium rates 47 MNW home insurance policies are likely to be sold direct while HNWs will continue to use brokers 47 It is possible that the MNW market will become more defined as a segment 47 Insurers will continue to remain competitive for clean risks, but premiums will increase for risky clients 47 The market will grow to reach 694m in gross written premiums by 2014 48 The total market will see moderate growth as a result of new business generation 48 The numbers of UK wealthy individuals will increase significantly to 12.4m by 2014 50 APPENDIX 52 Data tables 52 Definitions 53 Combined ratio 53 Composite insurer 53 Gross premium 53 London insurance market 53 Managing general agent 53 Mid-net worth (mass affluent) 53 Mass market 53 High net worth 53 Liquid assets (or liquid wealth) 54 Onshore 54 Written premiums 54 Methodology 54 Primary and secondary research 54 High value home insurance market sizing 54 Wealth Management Market Leaders Survey 2010 55 Datamonitors Global Wealth Model 55 The UK sub-model 55 Wealth model forecasting methodology 55 Datamonitors wealth numbers compared with other wealth numbers 56 Further reading 56 Ask the analyst 56 Datamonitor consulting 56 Disclaimer 57
List of Tables Table 1: Total number of UK affluents measured by onshore liquid wealth, 2005-09e (000s) 16 Table 2: Hiscox and Sterling ratios, 2005-08 (%) 21 Table 3: UK household insurance claims by peril, 2004-Q3 2009 (m) 24 Table 4: Selected number of offences from the British Crime Survey, 2004/05-2008/09 25 Table 5: Mid and high net worth products 37 Table 6: Key drivers affecting UK MNW and HNW home insurance GWP, 2010f-14f 48 Table 7: UK high value home insurance market GWP, 2009e-14f (m) 49 Table 8: Forecast for the number of UK affluents, 2009e-14f (000s) 51 Table 9: UK inflation rate as measured by the CPI and RPI, June 2008-December 2009 (%) 52
List of Figures Figure 1: Defining MNW and HNW policies 8 Figure 2: MNW policies start at around 50,000 of contents while HNW policies start between 150,000 and 250,000 9 Figure 3: Two thirds of the high value home insurance market is accounted for by MNW GWP in 2009 10 Figure 4: Hiscoxs advertising campaign has raised the profile of high value home insurance 13 Figure 5: The number of UK affluents grew in 2009, after falling significantly in 2008 15 Figure 6: Most UK-based HNWs are relatively young 17 Figure 7: Almost half of all HNW investment portfolios are invested into equities 18 Figure 8: Insurers can earn high returns from high value home insurance 20 Figure 9: 2009 will be a record year for escape of water claims 23 Figure 10: Generally crime has fallen, although fraudulent activities may continuing rising 25 Figure 11: Lorega is leading the way for loss recovery insurance 27 Figure 12: 2009 was characterized by falling inflation which in turn lowered home contents claims costs 28 Figure 13: Example of how price comparison sites could be used to capture customers 33 Figure 14: Hiscox is the number one high value home insurance underwriter 38 Figure 15: Chubb offers three main specialist high value household insurance policies 39 Figure 16: Hiscox and Chubb are the largest underwriters active in the high value home insurance market 41 Figure 17: Composites and specialist insurers are both active in the MNW and HNW home insurance market 42 Figure 18: Regals online offering seeks entice more HNWs into making online quotes 46 Figure 19: The high value home insurance market will experience an average growth of 3.9% up to 2014 49 Figure 20: The numbers of UK MNW and HNW individuals will experience year-on-year growth 50
Related Reports: Nippon Life Insurance Company http://www.reportsandreports.com/market-reports/nippon-life-insurance-company/
The Dai-ichi Mutual Life Insurance Company http://www.reportsandreports.com/market-reports/the-dai-ichi-mutual-life-insurance-company/
QBE Insurance Group Limited http://www.reportsandreports.com/market-reports/qbe-insurance-group-limited/
About Us ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
High quality & accurate Data Entry Services in UK - Need data entry services like numeric data entry, textual data entry, image data entry, OCR/ ICR processing services???DataEntryOutsourcing.co.uk is a leading data entry company with years of experien .. (387 Views)