英国における法人向け保険の流通動向：2007年

Abstract

Overview

Introduction

This report provides a comprehensive look at the distribution of commercial insurance in the UK. It uses data from two exclusive Datamonitor surveys and a proprietary broker database to provide insight into the purchasing habits of SMEs and the views of brokers. It also looks at broker consolidation activity in the market.

Scope

• The results of two unique surveys which look at SME and broker issues in the market.
• Insight from Datamonitor' s exclusive Insurance Broker Database, which contains broker market share information including client turnover.
• Forecast of the evolution of commercial insurance distribution from 2007 to 2011.

Report Highlights

Brokers will continue to dominate the distribution of commercial insurance over the next few years although national brokers are losing share to other intermediaries.

Consolidation is continuing apace as plenty of small brokers were snapped up during 2007.

Larger companies are more likely to switch broker than their smaller counterparts.

Reasons to Purchase

• Analyse SME attitudes towards switching provider and channel preference.
• Plan your future acquisition strategy by using exclusive distribution data forecast until 2011.
• Gain insight into how brokers are coping with the acquistion and retention of commercial clients.

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Total general insurance GWP declined in 2006
  • Brokers continued to dominate the distribution of commercial insurance
    • National brokers have lost distribution market share to the direct channel, chain brokers and telebrokers
  • Larger companies are more likely to have switched brokers between 2006 and 2007
    • Companies with a large turnover are more likely to switch broker
  • The market saw a number of mergers and acquisitions, many involving brokers
  • The broker channel is dominant in UK commercial insurance distribution, however its share of the market is declining
    • Brokers are forecast to see a 1% decline in market share between 2007 and 2011
• Table of Contents
• Table of figures
• Table of tables
• Introduction
  • What is this report about?
  • Who is the target reader?
  • How to use this report?
• Market Context
  • Introduction
  • Total general insurance GWP declined in 2006
    • The motor insurance market recorded its fourth consecutive year of decline
    • Property insurance GWP rose very slightly in 2006
    • General liability recorded a significant fall in GWP
    • Accident and health was the only business line to record strong growth
    • Pecuniary loss GWP fell by 3.2%
    • The general liability, commercial property, commercial motor and pecuniary loss markets recorded a fall in GWP in 2006
    • The UK business parc is continuing to grow steadily with most of the impetus coming from the smallest firms
    • The majority of UK businesses have no employees
• Distribution Dynamics
  • Introduction
  • Brokers continued to dominate the distribution of commercial insurance
    • National brokers have lost distribution market share to the direct channel, chain brokers and telebrokers
    • The direct channel increased its share of commercial insurance GWP by 1% in 2006
    • Affinity groups remain a small channel for the distribution of commercial insurance
    • Banks and building societies continue to play a small role in the distribution of commercial insurance
  • Organic growth remains a key strategy for brokers, although broker acquisitions remain popular
    • Brokers are keen to pursue organic growth
      • More than one fifth of the brokers surveyed have acquired a fellow broker
    • More than a third of brokers surveyed are considering planning an acquisition in the next 12 to 18 months
      • Increasing premium turnover and regional growth are the key motivations for planning a broker acquisition
  • The broker network model remains popular as many brokers wish to gain access to a larger panel of insurers
    • Over a third of brokers are part of a broker network
    • Many brokers joined a broker network to gain access to a larger panel of insurers
    • The proportion of brokers considering joining a broker network has decreased since the H1 2007 survey
• Customer Focus
  • Introduction
  • Larger companies are more likely to have switched brokers between 2006 and 2007 while Jardine Lloyd Thompson performed well in terms of acquisition and retention
    • Companies with a large turnover are more likely to switch broker
    • Commercial clients are more likely to switch from a multinational than any other intermediary but overall those who switch are more likely to move to a smaller broker
    • Jardine Lloyd Thompson leads the pack in successfully acquiring and retaining customers, with Willis a close second, whilst Marsh and Aon in particular suffered negative net retention
    • Aon was the largest net loser of clients between 2006-7, shedding clients to brokers from both within and outside the top four
  • SMEs buy mainly through brokers and long-term relationships are the norm
    • In general SMEs are content with their insurance providers and satisfaction levels remain high
    • Retention levels among SMEs remain high with most staying with their provider for longer than two years
    • Almost 90% of SMEs are not considering a change of provider in the next year
  • A small group of SMEs are willing to switch provider in search of lower prices
    • Only 16 per cent of SMEs have changed insurance provider in the last two years
      • Premium costs are particularly a concern for those that have switched recently
    • One in 10 SMEs are considering switching their insurance provider in the next 12 months
      • Recent switchers show lower loyalty levels than other SMEs
    • Price is the dominant concern for potential switchers
  • Most SMEs would approach a broker if switching but some are open to alternatives
    • Brokers remain the top choice for SMEs to approach if they had to switch provider
    • Many SMEs are willing to consider alternative channels when prompted
      • Up to 44% of SMEs would consider using a bank as an insurance provider
      • Almost three quarters of SMEs would be willing to consider direct insurers, in the hope of cost savings
      • Many SMEs are open to purchasing insurance by telephone
      • Even more SMEs are willing to buy their insurance via the Internet, showing the potential of this platform
    • Commercial motor and property insurance are most likely to be purchased through alternative platforms
  • Alternative distribution channels face a number of challenges in attracting switchers
    • A core group of SMEs will not buy direct, as they believe that direct insurers are more expensive
      • Brand awareness in the commercial sector remains low, hampering progress for direct insurers
      • Over 50% of SME will not consider buying from bancassurers
    • Direct insurers and bancassurers also have to overcome the unwillingness of some SMEs to buy by telephone or Internet
      • Two thirds of SMEs consider purchasing commercial general insurance too complex for the telephone
      • A majority of SMEs view commercial general insurance as too complex for the Internet
• Competitive Dynamics
  • Introduction
  • The market saw a number of mergers and acquisitions, many involving brokers
    • AXA acquired numerous commercial brokers in 2007, reinforcing its position in the SME sector
    • Groupama acquired a majority stake in Lark Group in August 2007
    • Direct Line began to offer business insurance in 2007
    • Equity Insurance Group recorded a large number of small-scale acquisitions
    • Towergate continued to acquire numerous brokers in 2007
    • Other brokers acquiring included Jelf, Giles, Broker Network and Oval
    • The top ten brokers have a market share of 96% of client turnover
    • The greater the turnover, the greater the market share of the multinational brokers
    • Of the companies in Datamonitor' s Insurance Broker Database, 22 arranged their insurance in-house
  • Aon acquired Footman James in 2007 and is looking to improve its claims process
    • Aon to use InterResolve to revolutionize claims process
    • Aon acquired specialist motor insurance broker Footman James in 2007
  • Willis is planning to grow its SME business and introduced a new commission structure in 2007
    • Willis aims to grow its UK SME business
    • Willis alters remuneration package by introducing 2.5% commission on top of all fees
  • Jardine Lloyd Thompson is to establish a new underwriting division and has said that a transformational deal may happen in future
    • Jardine Lloyd Thompson asserts independence from big 3
    • JLT bought niche personal lines broker Pavilion in 2007
    • JLT to establish an underwriting division
• The Future Decoded
  • Introduction
  • The broker channel is dominant in UK commercial insurance distribution, however its share of the market is declining
    • Brokers are forecast to see a 1% decline in market share between 2007 and 2011
    • The direct channel will see its commercial insurance distribution share rise to 11% by 2011
    • It is anticipated that insurers will make more affinity deals with retailers and associations to sell commercial insurance
    • Banks are expected to retain a distribution share of around 1% between 2007 and 2011
    • Company staff and agents will see slight reductions in market share
• APPENDIX
  • Definitions
    • SME
    • Definitions of ABI terms
      • Brokers
      • National brokers
      • Other intermediaries & brokers
      • Chain brokers & telebrokers
      • Direct
      • Other company agents
      • Utilities/retailers/affinity groups
      • Company staff
      • Banks/building societies
      • Written premiums
  • Methodology
    • Datamonitor' s UK Commercial Insurance Broker Competitor Database
      • Source of data
  • Industry sectors
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Total general insurance GWP by line of business, 2002-6
    • Table 2: Commercial general insurance market GWP and year-on-year growth, split by sector 2002-6
    • Table 3: Profile of UK enterprise by volume, employee numbers and turnover
    • Table 4: Market share of distribution channels in the commercial general insurance market, 2003-6
    • Table 5: Percentage of companies that changed broker between 2006 and 2007, by turnover band
    • Table 6: Commercial clients switching broker, by broker segment, 2006-07
    • Table 7: Acquisition and attrition performance of top four brokers between 2006 and 2007
    • Table 8: Customer retention within Aon, 2006-7
    • Table 9: Customer retention within Marsh, 2006-7
    • Table 10: Customer retention within Willis, 2006-7
    • Table 11: Customer retention within Jardine Lloyd Thompson, 2006-7
    • Table 12: Top ten brokers by market share of client turnover, 2006-7
    • Table 13: Market share of multinational brokers by client size, 2007
    • Table 14: UK companies arranging insurance in-house, 2007
    • Table 15: Forecast market share of distribution channels in the commercial general insurance market, 2004-11f
    • Table 16: Crawford' s Directory industry sectors
  • List of Figures
    • Figure 1: General insurance GWP declined in 2006
    • Figure 2: The general liability, commercial property and commercial motor markets recorded a fall in GWP in 2006
    • Figure 3: The number of UK enterprises increased by more than 100,000 between 2006 and 2007
    • Figure 4: More than 99% of UK companies are small businesses
    • Figure 5: National brokers dominate the distribution of commercial general insurance in the UK in terms of GWP
    • Figure 6: Organic growth remains a key growth strategy for the majority of brokers
    • Figure 7: Just over a fifth of brokers had acquired a fellow broker in the previous 12-18 months
    • Figure 8: Over 13% of survey respondents are planning an acquisition in the following 12-18 months
    • Figure 9: The majority of brokers planning an acquisition are doing so in order to increase their premium turnover or achieve regional growth
    • Figure 10: More than one third of brokers surveyed belong to a network
    • Figure 11: Access to a larger panel of insurers was the most common reason given for joining a broker network
    • Figure 12: The vast majority of survey respondents have no plans to join a broker network in the next 12-18 months
    • Figure 13: Companies with a greater turnover are showing less broker loyalty
    • Figure 14: The commercial clients of a multinational broker are most likely to switch
    • Figure 15: Willis won the highest percentage of clients, but Jardine Lloyd Thompson lost the smallest percentage of clients between 2006 and 2007
    • Figure 16: Marsh acquired five clients from Aon between 2006 and 2007
    • Figure 17: The majority of SMEs remain satisfied with their insurance providers
    • Figure 18: A majority of SMEs have been with their provider for over two years
    • Figure 19: Most SMEs do not consider dropping their current insurance provider
    • Figure 20: The number of SMEs staying with their provider for more than five years has increased since 2005
    • Figure 21: Price was the determining factor for choosing a new provider among SMEs who have been with their current provider for less than two years
    • Figure 22: Most SMEs are planning on retaining their insurance provider for at least the next 12 months
    • Figure 23: SMEs that have switched recently are more likely to do so again than those who have developed a long-term relationship with their provider
    • Figure 24: The price of insurance premiums is the most important reason given by SMEs planning to change insurance provider in the next year
    • Figure 25: SMEs have become more likely to consider direct insurers if they were to change provider
    • Figure 26: The prospect of cheaper premiums is the primary reason given for being willing to consider using a bank as an insurance provider
    • Figure 27: Price is the top reason given by SMEs that would consider switching to a direct insurer
    • Figure 28: Speed of concluding their insurance purchase is the primary reason given by SMEs willing to consider buying via the telephone
    • Figure 29: SMEs are willing to consider buying via the Internet if it is quicker and cheaper than other platforms
    • Figure 30: Over half of SMEs would consider buying commercial motor, property and employers' liability online or via the telephone
    • Figure 31: Fears that direct insurers will be more expensive is the top reason why 26% of SMEs will not consider such providers
    • Figure 32: Norwich Union is the direct insurer with the highest brand awareness in commercial insurance amongst SMEs
    • Figure 33: Half of SMEs which refused to consider banks view them as more expensive
    • Figure 34: The complexity of commercial insurance puts many SMEs off purchasing it over the telephone
    • Figure 35: The belief that commercial insurance is too complex to purchase online is the primary reason SMEs give for declining to consider the Internet as a distribution platform
    • Figure 36: Despite having fewer clients, Marsh had a larger share of client turnover than Aon
    • Figure 37: Multinational brokers have a larger share of client turnover for the bigger turnover bands
    • Figure 38: Although the broker channel is dominant in UK commercial insurance distribution, its share of the market is declining