Motor Insurance – A Look Back at the Figures

A few highlights from the motor insurance marketplace in 2009 – a look back

• The private motor market shrunk slightly in 2009
• The total market declined by 1% to 9.2 billion GWP
• Claims frequency fell slightly to 16.7% in 2009
• RBS Group is the largest provider of car insurance in the UK
• Lloyds Banking Group is no longer in the market
• GMAC Financial Services is looking to sell Provident
• HSBC has placed its motor insurance business into run-off
• QBE has also exited that market
• KGM Motor had a difficult 2009 and it is currently up for sale
• Quinn Direct will write considerably less UK business as a result of being in administration
• Markerstudy is looking to shed private motor business from Zenith following its acquisition in late 2009
• There were 24.8 million private motor policies in force during 2009
• Over the past decade, the proportion of non-comprehensive policies has fallen
• Fraudulent claims rose during the recession and are believed to have cost 1.9 billion in 2009
• Half of new motor business sales are initiated through a price comparison site
• Of the top 10 advertisers, GoCompare.com, Aviva and CompareTheMarket.com increased their spending
• The top four price comparison sites accounted for almost half of total TV advertising spend
• GoCompare.com was the number one motor insurance TV advertiser in 2009
• Retention rates are around 55% in the private motor market
• Older customers are less likely to switch car insurance provider
• Only 41.8% actually go on to buy policy via a price comparison website
• Equity Red Star is the largest UK motor insurer in the Lloyd’s of London market
• The total UK private motor market will be worth 10.8 billion in GWP in 2014
• Almost 90% of all policies in force are for comprehensive cover
• The average claim cost is just under 2,200