Uk Commercial Property Insurance Market Size, Trends and Opportunities by Radiant Insights

UK Commercial Property Insurance Market Size, Cost and
Price, Key Trends and Opportunities by Radiant Insights
Summary
The commercial property insurance sector has endured low premium rates for several years and 2015 has been no
different. As a result, the value of the market has experienced little change and gross written premiums (GWP) are
forecast to grow at a slow and steady rate. Commercial property insurance is very much a self-serving market, with
progress only achieved if it creates opportunities for itself, i.e. more properties to insure. Currently, the
construction industry continues on an upward trend, increasing output volumes, which suggests confidence has
returned to the sector, although the number of new orders has declined from last year, meaning it remains to be
seen if the current buoyancy of the market will be short-lived. The prospect of strong underwriting returns has
encouraged more competitors to enter the marketplace, which in turn has driven down premium rates to
stubbornly low levels, and a relatively benign claims environment indicates a rate rise may be a long way off.
Although this is encouraging for insurers, the cost of claims has risen, meaning incidents of peril are becoming
even costlier for providers to compensate. Coupled with this are the effects of the severe weather at the beginning
of 2016, which is likely to impact the market in the immediate year going forward. The UK's decision to exit the EU
will also undoubtedly affect foreign investment in commercial property and the business prospects of UK-based
insurers. The commercial property space has demonstrated signs of both optimism and unpredictability.
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Key Findings
- The commercial property market amounted to just over £5bn of GWP in 2015.
- Lloyd's of London wrote £568m of commercial property insurance GWP in 2015.
- Gross claims paid in 2015...