Landlord Insurance in the UK - Key Trends and Opportunities to 2017

Landlord Insurance in the UK - Key Trends and Opportunities to 2017

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The UK landlord insurance category is estimated to have generated GBP2.51 billion in gross written premiums in 2012, and accounted for 7.3% of the country's non-life insurance segment. Landlord policies cover the financial risks related to renting out a residential or commercial property, including damage to buildings or contents, loss of rent and public liability.
Growth in the category was maintained during the recession and economic weakness during 2008-2011, as a sluggish housing market triggered an increase in properties occupied on a rental basis. This signaled the reversal of a post-war trend towards property ownership, with close to 35% of properties rented through private or social housing landlords in 2012. This marked a five percentage-point increase from 2000 alone.

In addition to the subdued economic backdrop fueling a shift towards rented accommodation, it is also likely to have increased demand for landlord insurance due to greater risk aversion, a larger number of homeowners choosing to rent out property rather than sell at reduced prices, unemployment stoking a rise in the number of tenants in rent arrears, pessimistic businesses reducing their commitment to long commercial leases, and a rise in adverse weather-related incidents.

Opportunities exist to develop the category during the forecast period. Insurer-led market surveys have found that customers are under-informed about the insurance cover required for landlords, with up to a quarter of residential landlords opting to purchase a standard home insurance policy. Switching policyholders to appropriate landlord insurance policies presents a large growth potential for premiums in the category. Looser credit conditions and an increase in buy-to-let lending suggest additional favorable forces.

The outlook for the availability of flood insurance is clouded by uncertainty. Following the shift from the Statement of Principles to the industry and government Flood Re proposal, it has been confirmed that affordable flooding insurance will only be guaranteed for resident homeowners. Consequently, insurance premiums for landlords of both residential and commercial property are expected to face significant upside pressure over the forecast period. Industry associations estimate that the number of properties affected could be as high as 1 million.

Report Scope
  • This report provides market analysis, information and insights into the UK landlord insurance business
  • It provides a snapshot of the market size
  • It analyzes drivers and the outlook for the market
  • It provides information on distribution channels
  • It covers deals, news and regulatory developments
Reasons to Get this Report
  • Gain an understanding of the UK landlord insurance market size
  • Learn about the performance of market drivers and distribution channels
  • Understand the competitive landscape in terms of performance, profitability and product innovation
  • Find out more on key deals and recent developments in the market
Report Highlights
  • The landlord insurance market is worth GBP2.5 billion
  • Growth was sustained during the UK's economic downturn
  • Property market conditions were supportive of demand
  • Momentum is set to continue
  • Flood Re will add uncertainty for landlords


Table of Contents

1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
3.1 Market Size
3.2 Market Drivers
3.2.1 Residential property market dynamics
3.2.2 Residential construction
3.2.3 Commercial construction
3.2.4 Commercial property market dynamics
3.2.5 Recessionary backdrop
3.3 Claims
3.4 Market Outlook
3.5 Distribution
4 Competitive Landscape
4.1 Participants
4.2 Product Innovation
4.3 Investment Returns
4.4 Landlord Insurance - SWOT Analysis
5 Porter's Five Forces Analysis
5.1 Bargaining Power of Suppliers: Low
5.2 Bargaining Power of Buyers: Medium
5.3 Barriers to Entry: Medium
5.4 Intensity of Rivalry: Medium to High
5.5 Threat of Substitution: Medium
6 Deals
6.1 Brit Insurance Sells Simply Business Stake
6.2 Aviva Joins the PowerPlace Panel for Commercial Property
6.3 Specialist Rent Guarantee Product Launched
7 News
7.1 Flood Re Exclusions Confirmed
7.2 Finances Stretched After Christmas
7.3 Rental Sector Warrants Greater Investment
7.4 Decrease in Tenants on Benefits
8 Regulation and Compliance
8.1 Upcoming Regulations
8.1.1 Commercial Rent Arrears Recovery (CRAR)
8.1.2 Flood Re
8.1.3 Review of the Riot (Damages) Act
8.1.4 Solvency II
9 Macroeconomic Backdrop
9.1 Real GDP Growth
9.2 Property Market Dynamics
9.3 Inflation
9.4 Interest Rates
9.5 Demographics
10 Company Profiles
10.1 Allianz Insurance Plc - Company Overview
10.1.1 Allianz Insurance Plc - key facts
10.1.2 Allianz Insurance Plc - main products
10.1.3 Allianz Insurance Plc - main competitors
10.1.4 Allianz Insurance Plc - key employees
10.2 Aviva Plc - Company Overview
10.2.1 Aviva Plc - key facts
10.2.2 Aviva Plc - main products
10.2.3 Aviva Plc - main competitors
10.2.4 Aviva Plc - key employees
10.3 Axa UK Plc - Company Overview
10.3.1 Axa UK Plc - key facts
10.3.2 Axa UK Plc - main products
10.3.3 Axa UK Plc - main competitors
10.3.4 Axa UK Plc - key employees
10.4 Catlin Insurance Company (UK) Ltd - Company Overview
10.4.1 Catlin Insurance Company (UK) Ltd - key facts
10.4.2 Catlin Insurance Company (UK) Ltd - main products
10.4.3 Catlin Insurance Company (UK) Ltd - main competitors
10.4.4 Catlin Insurance Company (UK) Ltd - key employees
10.5 Direct Line Insurance Group Plc - Company Overview
10.5.1 Direct Line Insurance Group Plc - key facts
10.5.2 Direct Line Insurance Group Plc - main products
10.5.3 Direct Line Insurance Group Plc - main competitors
10.5.4 Direct Line Insurance Group Plc - key employees
10.6 Ecclesiastical Insurance Office Plc - Company Overview
10.6.1 Ecclesiastical Insurance Office Plc - key facts
10.6.2 Ecclesiastical Insurance Office Plc - main products
10.6.3 Ecclesiastical Insurance Office Plc - main competitors
10.6.4 Ecclesiastical Insurance Office Plc - key employees
10.7 FM Insurance Company Ltd - Company Overview
10.7.1 FM Insurance Company Ltd - key facts
10.7.2 FM Insurance Company Ltd - main products
10.7.3 FM Insurance Company Ltd - main competitors
10.7.4 FM Insurance Company Ltd - key employees
10.8 QBE Insurance (Europe) Ltd - Company Overview


Companies Mentioned:

Allianz Insurance Plc
Aviva Plc
Axa UK Plc
Catlin Insurance Company (UK) Ltd
Direct Line Insurance Group Plc
Ecclesiastical Insurance Office Plc
FM Insurance Company Ltd
QBE Insurance (Europe) Ltd
Royal & Sun Alliance Insurance Plc
Zurich Insurance Plc