UK SME Insurance: Competitor Dynamics 2019

AXA remains the market leader in the competitive SME insurance space. However, Aviva’s share of the market is smaller only by a fraction, as each competitor now leads in six product categories. One of the reasons for their success is strong relationships with brokers, who are critical in the distribution of commercial insurance. But both providers lost market share in 2019 as smaller insurers have started to expand their mark on the market.

The pressure from nimble providers will increase, and delivering simple and tailored products will be key to succeed in the long term. Yet Brexit may prove beneficial to the market leaders. Big insurers are better positioned to sustain financial pressures and economic uncertainty, while challengers can be discouraged from taking risks and making significant investments.

This report looks at which insurers lead the way in the SME segment and how they are developing their propositions, as well as highlighting how competitor positions vary between micro, small, and medium enterprises. It examines which insurers are winning over brokers and which companies SMEs are placing their business with.

Scope

– AXA led the SME insurance market in 2019 with a 0.2 percentage point (pp) lead over Aviva.

– Zurich is attracting and retaining customers through better services delivery.

– The company now accounts for 5.6% of the SME insurance market.

– Barclays continues to profit from its SME banking relationships, holding 3.5% of the SME insurance market.

– Aviva is the top SME insurer among brokers in both packaged and non-packaged insurance.

Reasons to buy

– Identify trends that are driving changes in the SME insurance market.

– Assess the financial performance of competitors.

– Identify distribution strategies to ensure yours still fits customer purchasing behaviors.

Companies mentioned

AXA

Aviva

Zurich

Bupa

NFU Mutual

Barclays

Hiscox

Simply Business

Admiral

Direct Line

RSA Insurance

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY

1.1. The SME insurance market remains extremely competitive

1.2. Key findings

1.3. Critical success factors

2. THE SHAPE OF THE SME INSURANCE MARKET

2.1. Introduction

2.2. Aviva is brokers’ first choice for SME insurance

2.2.1. Aviva leads the packaged broker insurance market

2.2.2. Aviva also leads non-packaged SME insurance in the broker space

2.3. AXA is the overall leader in the SME insurance market

2.3.1. AXA and Aviva are losing market share to smaller players as competition tightens

2.3.2. Product specialization allows insurers to challenge the market leaders’ dominance

2.3.3. Barclays leads bancassurance

3. TOP FIVE INSURERS BY PRODUCT LINES

3.1. Top five players for business interruption insurance

3.2. Top five players in directors and officers liability insurance

3.3. Top five players in employers’ liability insurance

3.4. Top five players for key man insurance

3.5. Top five players for personal accident and business travel insurance

3.6. Top five players for property insurance

3.7. Top five players for professional indemnity insurance

3.8. Top five players for public liability insurance

3.9. Top five players for private medical insurance

3.10. Top five players for cyber insurance

3.11. Top five players for commercial vehicle insurance: company cars -single

3.12. Top five players for commercial vehicle insurance: company cars – fleet

3.13. Top five players for commercial vehicle insurance company vans – single

3.14. Top five players for commercial vehicle insurance: company vans – fleet

3.15. Top five players for commercial vehicle insurance: other – single

3.16. Top five players for commercial vehicle insurance: other – fleet

4. KEY PLAYERS IN THE UK SME INSURANCE

4.1. The SME segment is key to AXA’s growth strategy

4.1.1. AXA reorganized its SME servicing activities in 2019

4.1.2. AXA is well positioned to capitalize on the demand for cyber insurance

4.2. Aviva is focusing on digital services

4.3. Barclays provides Brexit advice for SMEs

4.4. Bupa Global launched the Global Virtual Care digital GP service

5. TOP INSURERS BY NET PROMOTER SCORE

5.1. Zurich establishes itself as a top player through it NPS

5.2. Aviva’s NPS could further close the gap with AXA

6. APPENDIX

6.1. Abbreviations and acronyms

6.2. Definitions

6.2.1. SME

6.3. Methodology

6.3.1. GlobalData’s UK SME Insurance Survey

6.3.2. GlobalData’s UK Commercial Broker Survey

6.4. Secondary sources

6.5. Further reading

List of Tables

List of Tables

Table 1: Market share of packaged SME insurance, 2015-19

Table 2: Market share of non-packaged SME insurance, 2015-19

Table 3: Top three players’ shares across each product line

Table 4: Breakdown of business interruption insurance market shares by size category, 2019

Table 5: Breakdown of directors and officers liability insurance market shares by size category, 2019

Table 6: Breakdown of employers’ liability insurance market shares by size category, 2019

Table 7: Breakdown of key man insurance market shares by size category, 2019

Table 8: Breakdown of personal accident and business travel insurance market shares by size category, 2019

Table 9: Breakdown of property insurance market shares by size category, 2019

Table 10: Breakdown of professional indemnity insurance market shares by size category, 2019

Table 11: Breakdown of public liability insurance market shares by size category, 2019

Table 12: Breakdown of private medical insurance market shares by size category, 2019

Table 13: Breakdown of cyber insurance market shares by size category, 2019

Table 14: Breakdown of commercial motor – company car (single) market shares by size category, 2019

Table 15: Breakdown of commercial motor – company car (fleet) market shares by size category, 2019

Table 16: Breakdown of commercial motor – van (single) market shares by size category, 2019

Table 17: Breakdown of commercial motor – van (fleet) market shares by size category, 2019

Table 18: Breakdown of other commercial motor – other (single) market shares by size category, 2019

Table 19: Breakdown of other commercial motor – other (fleet) market shares by size category, 2019

Table 20: Customer satisfaction among leading insurers in selected lines, 2019

List of Figures

List of Figures

Figure 1: Aviva had a strong 2019, capturing first place from long-time market leader Allianz

Figure 2: Aviva holds a strong lead through the use of brokers

Figure 3: AXA and Aviva lead the market as Zurich and AA replace Allianz and Direct Line

Figure 4: Visually understanding the highly competitive SME insurance market

Figure 5: Barclays’ strong presence among SMEs gives it a platform to sell insurance

Figure 6: AXA leads the way for business interruption as LV= joined the top five

Figure 7: Zurich leads the way for directors and officers liability insurance, while NFU Mutual joined the top five

Figure 8: Aviva overtook AXA as Hiscox joined the top five

Figure 9: AXA leads key man insurance, with the top five remaining unchanged from 2018

Figure 10: Aviva has a narrow lead over AXA in personal accident and business travel insurance

Figure 11: Aviva maintained its strong position in property insurance, while LV= joined the top five

Figure 12: AXA extended its lead in the professional indemnity market and Hiscox joined the top five

Figure 13: AXA maintained its leading position, while Hiscox and Simply Business joined the top five

Figure 14: Bupa has a clear lead in private medical insurance

Figure 15: AXA and Aviva continue to lead the cyber insurance market

Figure 16: Aviva leads commercial vehicle insurance while LV= joined the top five

Figure 17: Aviva has a clear lead over its closest competitors

Figure 18: AXA regained its lead in the company vans (single) insurance space

Figure 19: Competition between Aviva and AXA is fierce

Figure 20: Swinton, More Than, and RSA Insurance all joined the top five in 2019

Figure 21: Strong growth from NFU Mutual saw it overtake AXA

Figure 22: Aviva’s challenge to AXA will be boosted by its strong customer relationships

Figure 23: The three leading insurers all received positive feedback across the four lines

    Pricing

Discounts available for multiple report purchases.

reportstore@globaldata.com
+44 20 7947 2745

Join our mailing list

Saved reports