Press release: small business segments marketing business insurance to major professions and trades in the uk
Expenditure on commercial non-life insurance by small businesses and self-employed individuals in the UK with a turnover of up to £5 million is likely to total around £5.21 billion in 2013, according to a new report published by Finaccord. This is marginally less than the £5.22 billion estimated for 2009 but slightly higher than the five-year low point of £5.07 billion in 2011.
Published on: Mar 4, 2016
Transcripts - Press release: small business segments marketing business insurance to major professions and trades in the uk
Small Business Segments:
Marketing Business Insurance to Major Professions and Trades in the UK
Total insurance expenditure by small businesses in the UK expected to rise to £5.66 billion by 2017
London, 25 September 2013 - Expenditure on commercial non-life insurance by small businesses
and self-employed individuals in the UK with a turnover of up to £5 million is likely to total around
£5.21 billion in 2013, according to a new report published by Finaccord. This is marginally less than
the £5.22 billion estimated for 2009 but slightly higher than the five-year low point of £5.07 billion in
Finaccord estimates that the total market for small business insurance will grow at a compound
annual rate of 2.1% between 2013 and 2017 due in part to an increase in the number of insured
companies and in part a moderate rise in average premiums. This means that by 2017, total
insurance expenditure by small businesses is expected to amount to around £5.66 billion (see
Graphic 1 on the third page).
"The market for business insurance acquired by small enterprises and self-employed individuals in the
UK is not a single, homogeneous sector but rather a series of niches that vary radically by size and
growth", comments Bernd Bergmann, a Consultant at Finaccord.
Three segments have seen annual growth in insurance expenditure of at least 5% since 2009
Between 2009 and 2013, the segment of independent teachers, trainers and tutors is believed to have
recorded the most rapid compound annual growth rate in its total insurance expenditure at 5.8%,
followed by complementary medical practices (5.5%), domiciliary care providers (5.0%), health clubs
and facilities (4.5%) and specialised private medical practices and clinics (also 4.5%).
On the other hand, the most precipitous falls were registered for the segments defined as carpenters
and joiners (-6.2%), fuel retailers (-6.0%), manufacturers of building supplies (-5.9%), manufacturers of
furnishings or furniture (-5.1%) and manufacturers of 'other products' (-4.9%). In these cases, the
declines were primarily driven by a long-term fall in the number of small enterprises (see Table 1 on
the fourth page).
The value of insurance acquired by independent teachers, trainers and tutors is set to rise further
With reference to predicted developments up to 2017, the segment of independent teachers, trainers
and tutors is again expected to register the highest increase in insurance expenditure in terms of
compound annual growth at 8.0%. Thereafter, the highest increases are anticipated for
complementary medical practices (7.5%), marketing and advertising firms (6.3%), specialised private
medical practices and clinics (6.1%), and domiciliary care providers (also 6.1%).
However, for the same future time frame, the segments of book and music retailers, manufacturers of
'other products' and manufacturers of clothing and footwear are forecast to experience the steepest
declines in insurance expenditure, each at a compound annual rate of -1.9%, followed by electrical
appliance retailers and repairers (-1.6%) and publishing firms (-1.1%).
Once again, the long-term fall in the number of small enterprises in these segments is the main reason
for these results even at a time when the economy is expected to perform better relative to previous
“Insurance providers that position themselves in particular professional and trade segments stand to
grow more quickly than those with a less targeted offering. While the commercial insurance market
has hardly grown in recent years, there are several interesting niches which have achieved high
growth rates in insurance expenditure and that are destined to expand further as many enterprises
remain under-insured” concludes Bernd Bergmann.
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Media contact: Roberto Napolitano, +44 (0)20 3008 4406, email@example.com
Notes to editors:
Finaccord is a market research, publishing and consulting company specialising in financial services. It
provides its clients with insight into and information about major issues in financial services in the UK,
Europe and globally, with a particular focus on marketing and distribution topics such as affinity
marketing, bancassurance and strategic alliances.
Finaccord’s Small Business Segments: Marketing Business Insurance to Major Professions and
Trades in the UK casts new perspectives on the market for insurance acquired by small businesses
and self-employed individuals in the UK. With a focus on enterprises with an annual turnover of up to
£5 million, the research sizes the market both in terms of the actual number of insurable enterprises in
each of 105 major professional and trade segments and the value of their business insurance
expenditure each year. The complete list of segments analysed can be viewed here.
The study also offers a breakdown of this data across three annual turnover bands (enterprises with
an annual turnover of up to £100,000, enterprises with an annual turnover of between £100,000 and
£1 million, and enterprises with an annual turnover of between £1 million and £5 million) and provides
‘backcasts’ to 2009 and forecasts to 2017 in order to provide a time line across nine years.
With regards to the rationale, insurance providers usually conceive, develop and promote insurance
policies for the small business market with particular professions and trades in mind rather than by the
generic categories of commercial motor insurance, commercial property insurance, general liability
insurance, pecuniary loss insurance and so on.
However, market data issued by official industry body and other published research sources focuses
purely on those generic categories rather than the underlying professions and trades, hence Finaccord
has sought to develop a product that meets more effectively the marketing needs of insurance
providers in this arena by analysing the market by profession and trade.
Graphic 1: approximatecommercial non-life insurance
expenditure ofsmall businesses in the UK, 2013-2017
5.21 5.30 5.40 5.53 5.66
2013 2014 2015 2016 2017
Market value (£ billions)Market value in GWP (£ billion)
Table 1: the five fastestgrowingandfive fastestdecliningbusiness
segments byapproximate insurance expenditure, 2009-2013 and2013-2017
Source: Finaccord Trade Credit Insurance Broker Survey
Segment CAGR, 2009-2013
Five fastest growing, 2009-2013
Independent teachers, trainers and tutors 5.8%
Complementary medical practices 5.5%
Domiciliary care providers 5.0%
Health clubs and facilities 4.5%
Specialised private medical practices and clinics 4.5%
Five fastest declining, 2009-2013
Carpenters and joiners -6.2%
Fuel retailers -6.0%
Manufacturers of building supplies -5.9%
Manufacturers of furnishinings or furniture -5.1%
Manufacturers of other products -4.9%
Segment CAGR, 2013-2017
Five fastest growing, 2013-2017
Independent teachers, trainers and tutors 8.0%
Complementary medical practices 7.5%
Marketing and advertising firms 6.3%
Specialised private medical practices and clinics 6.1%
Domiciliary care providers 6.1%
Five fastest declining, 2013-2017
Book and music retailers -1.9%
Manufacturers of other products -1.9%
Manufacturers of clothing or footwear -1.9%
Electrical appliance retailers and repairers -1.6%
Publishing firms -1.1%