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SUMMARY
Abstract
Overview
Introduction
The UK motorcycle insurance market experienced significant competitive
pressures in both 2006 and 2007. This report examines the reasons behind this
competition, as well as providing information on GWP, premium rates, and bike
numbers. It also provides a GWP forecast up to and including 2011, making it
essential reading for those with an interest in motorcycle insurance.
Scope
- Analysis of market size and the drivers behind recent developments
- Detailed competitor analysis, comparing the relative performance of all
major and emerging motorcycle insurers
- Detailed market forecast based on Datamonitor's in-house model and
expertise
Report Highlights
Competitive conditions in the market kept premium rates soft in 2006.
Insurers, particularly the largest players in the market, were reported to
have targeted growth in what remained a profitable market.
According to industry executives interviewed by Datamonitor motorcyclists
typically prefer to purchase through specialist brokers, and it is mainly
brokers that have high brand awareness in the market, achieved through
advertising and high profile sponsorships.
Reasons to Purchase
- Benchmark your company against your competitors based on current and past
performance in the market
- Target your motorcycle insurance proposition through a better knowledge of
the trends in bike ownership
- Develop your future business plans from an informed viewpoint with
Datamonitor's market forecast
TABLE OF CONTENTS
Table of Contents
- Overview
- Table of Contents
- Table of figures
- Table of tables
- Market Context
- Introduction
- UK motorcycle insurance GWP grew slightly in 2006 but contracted in 2007
due to falling premium rates
- Slow growth in bike numbers and lower premium rates resulted in only a
slight increase in motorcycle GWP in 2006
- Competitive pressure on premium rates resulted in an estimated market
contraction of 1.0% in 2007
- Premium rates fell again in 2007, while vehicle numbers continued to
slowly increase
- Premium rates declined for motorcycle risks in both 2006 and 2007
- The motorcycle parc has continued to expand, bolstering the size of
the market
- The motorcycle parc has become older, though new registrations have
not fallen much since 2004
- Approximately the same number of new bikes were registered in 2006
as in 2005
- Almost half of all motorcycles on Britain's roads were first
registered more than five years ago
- The motorcycle market remains bifurcated, with the largest and
smallest models the most popular
- The Suzuki GSXR 1000 became the most sought after motorcycle in 2007
- Green bikes may rise in popularity in the future
- Casualty and theft rates influence the claims bill for motorcycle
insurance
- Claims involving personal injury continued to drive claims inflation
due to high medical and legal costs
- Casualty rates are down, which should result in lower claims frequency
for insurers
- The pass rate for motorcycle tests have fallen slightly over the
last decade
- Theft rates also influence the motorcycle claims bill
- Competitive Dynamics
- Introduction
- Few of the top motorcycle insurers managed to increase market share in
2006
- Only two top 10 insurers, Equity Red Star and QBE, increased their
market share in 2006
- The majority of the top 10 motorcycle insurers lost premium income and
market share in 2006
- Some insurers began recording motorcycle premium income for the first
time in 2006
- Distribution is dominated by a few specialist brokers
- Specialist brokers Carole Nash, Bennetts and Devitt dominate the
distribution of motorcycle insurance
- Carole Nash, now part of Groupama, is the largest motorcycle
insurance broker in the UK
- Bennetts is the second largest broker in the UK distributing over
200,000 motorcycle policies a year
- Devitt, which is owned by RBSI, focuses on distributing insurance
through motorcycle dealers
- Motorcycle dealers and manufacturers have long been a key route to
market for motorcycle insurance
- Brokers advertising via the press dominated motorcycle insurance
advertising in 2006
- The amount spent on motorcycle advertisement increased in 2006 and
brokers dominated the top 10
- Press advertising in trade publications dominated the spend of the top
advertisers
- Future Decoded
- Introduction
- Motorcycle insurance GWP is forecast to increase in the near term before
contracting again
- A number of factors influence future GWP growth in the motorcycle
market
- Motorcycle GWP is expected to grow in most of the forecast period as
competitive pressure lessens
- APPENDIX
- Supplementary data
- Definitions
- Premium income measures
- Earned premiums
- Gross Premium
- Net Premium
- Written premiums
- Other definitions
- Channel
- Direct insurer/writer
- Brokers
- Bancassurers
- Brandassurers
- Platform
- 2005-06 definitions for line of business
- Motor
- Total private motor
- Private motor comprehensive
- Private motor non-comprehensive
- Motorcycle
- Pre-2005 definitions for lines of business
- Methodology
- Primary and secondary research
- Market size
- Changes in market size information
- Market size methodology
- Lloyd's players and underwriting result figures
- Competitor data
- CIS
- GWP versus GEP reporting
- Home-Foreign, overseas and facultative reinsurance business
- Advertising statistics
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: UK motorcycle insurance GWP, 2002-07e (£m)
- Table 2: Motorcycle parc in Great Britain by body type, 2002−06
(000s)
- Table 3: Motorcycles registered for the first time in Great Britain by
body type, 2002−06 (000s)
- Table 4: Motorcycle parc by age of first registration by body type,
2006 (000)
- Table 5: Motorcycle parc by engine size and body type, 2002-06 (000s)
- Table 6: Top 10 new motorcycle registrations by brand, year to date,
November 2007
- Table 7: Road traffic casualties in Great Britain, 1996-2006
- Table 8: Number of motorcycle tests and pass rate in Great Britain,
1997/98−2006/07
- Table 9: Theft of and from motor vehicles in the UK, 1996-2006/7
- Table 10: Top 10 motorcycle insurers by market share, 2002-06
- Table 11: UK motorcycle insurance competitors by premium income,
2002−06 (£000)
- Table 12: Policy numbers and market share of top three UK motorcycle
insurance brokers, 2007
- Table 13: Top 10 motorcycle insurance advertisers, 2005−06 (£)
- Table 14: Top 10 motorcycle insurance advertisers by media, 2006 (£)
- Table 15: Key variables affecting motorcycle insurance GWP, 2007e-12f
- Table 16: UK motorcycle insurance GWP forecast, 2002-12f (£m)
- Table 17: Licensed motorcycles in Great Britain by taxation class as a
proportion of total vehicle stock, 2002-06 (000s)
- Table 18: New motorcycle registrations in Great Britain by taxation
class, 2002-06 (000s)
- List of Figures
- Figure 1: Motorcycle GWP declined in 2007 after a slight increase in
2006
- Figure 2: Bike numbers are growing, but at a slower rate than in
previous years
- Figure 3: The number of new bike registrations have remained almost
flat since 2004
- Figure 4: Bikes over 500cc, touring and superbikes, have dominated the
market over the last five years
- Figure 5: Motorcycle casualties as a proportion of total road
casualties have fallen since 2003
- Figure 6: Motorcycle test pass rates have fallen between 1997 and
2006, but increased in the last year
- Figure 7: Theft of and from motor vehicles continued to decline in
2006/7
- Figure 8: The market leader, Equity Red Star, increased its market
share in 2006
- Figure 9: The RBSI broker Devitt spent the largest amount marketing
motorcycle insurance in 2006
- Figure 10: Advertising in the press was the favored medium for
motorcycle insurance providers in 2006
- Figure 11: UK motorcycle premium income is forecast to increase slowly
through most of the forecast period
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