Home Insurance in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: December 2023
SIC SP0.166Revenue
£5.2bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
23,540
Businesses
449
Wages
£XXX.Xm
Home Insurance in the UK industry analysis
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.
Trends and Insights
- Turbulence is set to slow home insurance demand. With declining property transactions, rising interest rates and a challenging economic outlook, demand for home insurance products is expected to slow down dramatically.
- A housing market downturn pinches home insurance demand. Nominal residential transactions have plummeted by 19% from last year, dampening demand for combined property and contents insurance due to intense competition and pricing pressures.
- London maintains its dominant position in the global insurance market. The city thrives due to its consolidation over the past decade and is the only place where all 20 of the world's top insurers and reinsurers are based.
- Big hitters dominate th3 Home Insurance industry. Leading insurers like Direct Line, Aviva, and Lloyds leverage their financial capabilities to invest in capital markets and meet stringent capital adequacy requirements, giving them an edge in writing more insurance policies.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated £5.2bn in 2023.
Trends and Insights
Demand for home insurance is set to slow in line with declining property transactions
- An improvement in the number of property transactions spurs demand for home insurance products. Property transactions have been supported by numerous initiatives aimed at tackling the housing shortage, like the extension of the Help to Buy Scheme for first-time buyers, which ended in March 2023.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A recovery in the UK housing market will aid demand for home insurance
- The UK housing market is set to make a subdued recovery in 2024-25, following a sharp downturn in the current year as rising interest rates ramp up the cost of mortgages.
Biggest companies in the Home Insurance in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
Aviva plc | 809.1 | |
AXA Insurance UK plc | 642.3 | |
RSA Insurance Group Ltd | 541.1 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Home Insurance in the UK
Products & Services
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.
Trends and Insights
Weak residential transactions hurt demand for combined property and contents insurance
- Combining property and contents insurance is a popular way of packaging home insurance. By uniting property and contents insurance, insurers can make efficiency savings that help them to improve their profit margins.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Life Insurance in the UK
- General Insurance in the UK
- Reinsurance in the UK
- Insurance Agents & Brokers in the UK
International industries
- Global Direct General Insurance Carriers
- Property, Casualty and Direct Insurance in the US
- Pet Insurance in the US
- Automobile Insurance in the US
- Homeowners' Insurance in the US
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Combined property and contents insuranceProperty insuranceContents insuranceSpecialist insuranceCompanies
Aviva plcAXA Insurance UK plcRSA Insurance Group LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
CESSATION RATIONET PREMIUM INCOMECAPACITYIndustry Code
SIC 65.12 - Home Insurance in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Turbulence is set to slow home insurance demand. With declining property transactions, rising interest rates and a challenging economic outlook, demand for home insurance pro...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
A housing market downturn pinches home insurance demand. Nominal residential transactions have plummeted by 19% from last year, dampening demand for combined property and con...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London maintains its dominant position in the global insurance market. The city thrives due to its consolidation over the past decade and is the only place where all 20 of th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Big hitters dominate th3 Home Insurance industry. Leading insurers like Direct Line, Aviva, and Lloyds leverage their financial capabilities to invest in capital markets and ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Aviva leverages partnerships for growth. Partnering with institutions like TSB and HSBC, the British insurer expands its reach and enhances digitisation strategies, helping t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Aviva plc's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of AXA Insurance UK plc's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of RSA Insurance Group Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Aviva plc, and factors influencing its performance in the industry
- Description and key data for AXA Insurance UK plc, and factors influencing its performance in the industry
- Description and key data for RSA Insurance Group Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The FCA's new GI pricing reforms aim for fairness. These new regulations curb insurers' ability to hike up renewing customers' rates, with savings potentially hitting £10.2 b...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Turbulent financial markets disrupt home insurance profit margins. Due to an underwhelming performance from bonds and stricter pricing rules impacting premiums, the average p...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Home Insurance in the UK industry in United Kingdom in 2024?
The market size of the Home Insurance in the UK industry in United Kingdom is £5.2bn in 2024.
How many businesses are there in the Home Insurance in the UK industry in 2023?
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.
Has the Home Insurance in the UK industry in United Kingdom grown or declined over the past 5 years?
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.
What is the forecast growth of the Home Insurance in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Home Insurance in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Home Insurance in the UK market in United Kingdom?
The biggest companies operating in the Home Insurance market in United Kingdom are Aviva plc, AXA Insurance UK plc and RSA Insurance Group Ltd
What does the Home Insurance in the UK in United Kingdom include?
Combined property and contents insurance and Property insurance are part of the Home Insurance in the UK industry.
Which companies have the highest market share in the Home Insurance in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Aviva plc.
How competitive is the Home Insurance in the UK industry in United Kingdom?
The level of competition is high and steady in the Home Insurance in the UK industry in United Kingdom.
