’The sector anticipates steady growth but must adapt to emerging risks and consumer demands,’ says senior analyst
The UK general insurance industry’s gross written premium (GWP) will grow at a compound annual growth rate (CAGR) of 5% over the next four years.
That was according to GlobalData’s UK general insurance report, which said GWP is expected to grow from £92.9bn in 2025 to £113bn in 2029.
Published yesterday (24 April 2025), the report said that the rise would be driven by “increasing home insurance cost, the rising natural catastrophic events, the government push for greener vehicles and rising demand for commercial motor insurance”.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, added: “The UK general insurance industry is navigating change, driven by evolving consumer behaviours, climate challenges, regulatory changes, competition and price sensitivity.
“Overall, the sector anticipates steady growth but must adapt to emerging risks and consumer demands.”
Lines of business
Motor insurance is the leading line of business in the UK general insurance industry, estimated to account for a 28% share of the direct written premium (DWP) in 2025. It is expected to grow at a CAGR of 2.4% during 2025-29.
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Meanwhile, property insurance is estimated to account for a 25.7% share of DWP in 2025.
It is expected to grow by 5.8% in 2025, driven by rising frequency of extreme weather events, including storms and flooding, rising building costs, rising opportunity for contents and renters insurance, as well as increasing consumer demand for comprehensive coverage.
Sahoo said: “The outlook for the UK general insurance market remains positive, with growth driven by regulatory change and evolving consumer needs. Insurers must remain agile and innovative to navigate the challenges posed by climate change and economic pressure.
”However, the increased Ogden rate is a welcome development for general insurers.”
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