Datamonitor says market is strengthening but will slow in 2013
Research by an independent market analyst has shown growth in personal general insurance lines in 2010, with further growth expected in the next three years.
Datamonitor says the market has strengthened this year and will show a marginal increase in GWP of 0.5% across personal insurance lines.
This will be followed by strong growth of around 3% out to 2014 when Datamonitor forecasts that the market size will reach £29.2 billion in 2014.
But at least a proportion of this growth is expected to represent a rise in premium rates in some lines of insurance, in particular that of private motor cover.
Stephen Ko, financial services analyst at Datamonitor, said: “We expect that 2011 and 2012 will see increasing growth rates, while 2013 and 2014 will still see growth but at a decreased rate.”
Ko continued: “This deceleration is mirrored in the expected market progression for the private motor and, to a lesser extent, personal pecuniary loss insurance lines, for which rapid market growth is expected to slow down toward 2014.”
“In 2009, these two sectors together comprised 50.2% of the total personal general insurance market, and so will have a significant impact on overall personal insurance GWP growth,” he said.
