With more than 330 long-term savings providers, nearly 1,000 general insurers and employing in excess of 300,000 people, the U.K. insurance industry is the fourth largest in the world with total premium volume of some $400 billion, according to ADV Ratings.
As of April 2022, AM Best has maintained a negative outlook for the U.K.’s non-life insurance market. Driving this rating were inflation and the conflict in Ukraine, which destabilize underlying macroeconomic factors. Growing rates for commercial lines helped lessen the blow from inflation and the war, but AM Best anticipates pricing to slow in the U.K. as the year draws on.
Further, the rating agency expects that auto lines, which make up about one-third of U.K. non-life premium income, will continue to see claims inflation outpace rate increases, while weather-related risks will bring volatility to property lines.
Europe-based property insurance tech startup Bdeo reported property claims costs are increasing in the U.K. because of several factors, including the historical underpricing of premiums, the increased risk of modern construction, expensive water claims and high repair costs.
The above slideshow reveals the largest insurance companies in the U.K. based on market capitalization, according to ADV Ratings.