£5.2bn
£XXX.Xm
23,540
449
£XXX.Xm
Over the five years through 2023-24, the Home Insurance industry's revenue is anticipated to decline at a compound annual rate of 1.9% to £5.2 billion, including growth of 2.1% in 2023-24. Revenue is comprised of premium income and investment income. Insurers must maintain enough capital reserves to meet liabilities in the event of a claim; insurers invest premium income in a diverse range of asset classes to gain a return.Despite strong demand for home insurance, supported by a rising number of housing transactions and a strong rental market, the home insurance industry has endured challenging operating conditions in recent years, including intense competition from other financial institutions such as retail banks, downward pricing pressures and a tightening regulatory environment. Following a hefty decline during the COVID-19 outbreak in 2020-21, revenue made a modest recovery 2021-22 as client activity picked up. According to ABI, premiums plummeted by 6% in 2022 amid fierce price competition and the FCA's new pricing reforms. This was despite a rise in claims following numerous severe weather events and inflated building material costs. Yet, inflationary pressures are set to take hold in 2023-24, lifting premiums.Home insurance revenue is forecast to climb at a compound annual rate of 3.1% over the five years through 2028-29 to reach £6 billion. A revival in the housing sector following a contraction in 2023-24 is set to aid demand for home insurance. All insurers are set to be compliant with the Solvency II reforms by December 2024, which will unlock £100 billion of investment, lifting revenue growth over the coming years. Insurtechs will continue to lead the way in innovation offering greater personalisation for customers thanks to AI and big data.
Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated £5.2bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue (£m)
2024 |
---|---|---|
Aviva plc | 809.1 | |
AXA Insurance UK plc | 642.3 | |
RSA Insurance Group Ltd | 541.1 |
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Home Insurance in the UK
Industry revenue is measured across several distinct product and services lines, including Property insurance, Contents insurance and Combined property and contents insurance. Property insurance is the largest segment of the Home Insurance in the UK.
Weak residential transactions hurt demand for combined property and contents insurance
Companies in this industry underwrite home insurance policies. This means they assume the risk for the insurance and decide the appropriate premium. These policies protect against loss of or damage to property and contents due to theft, fire and other causes.
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SIC 65.12 - Home Insurance in the UK
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Including values and annual change:
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Key data sources in the UK include:
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These sources include:
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The market size of the Home Insurance in the UK industry in United Kingdom is £5.2bn in 2024.
There are 449 businesses in the Home Insurance in the UK industry in United Kingdom, which has grown at a CAGR of 0.3 % between 2018 and 2023.
The market size of the Home Insurance in the UK industry in United Kingdom has been declining at a CAGR of 1.9 % between 2018 and 2023.
Over the next five years, the Home Insurance in the UK industry in United Kingdom is expected to grow.
The biggest companies operating in the Home Insurance market in United Kingdom are Aviva plc, AXA Insurance UK plc and RSA Insurance Group Ltd
Combined property and contents insurance and Property insurance are part of the Home Insurance in the UK industry.
The company holding the most market share in United Kingdom is Aviva plc.
The level of competition is high and steady in the Home Insurance in the UK industry in United Kingdom.