IntroductionThe report examines key distribution trends taking place in the motorcycle insurance market and offers insight into the advertising strategies of the top motorcycle insurance distributors. It also analyses which underwriters are leading the way in this market and forecasts what the future holds for the sector over the next four years.Scope*Analysis of market size and the drivers behind recent developments.*Insight into the main competitive developments taking place in the UK motorcycle insurance market.*GWP forecasts to 2014, based on in-house expertise and proprietary model.HighlightsIn 2008, total advertising spend on motorcycle insurance fell by a significant 60.0% to £323,985 from £810,683 in 2007. It is likely that the recession was a significant driver behind many firms' decisions to reduce their spending on marketing that year in a bid to decrease expenses.Industry executi! ves stated that the popularity of aggregators had peaked in 2009, with the recession driving many consumers onto price comparison sites in a bid to generate cost savings. One industry executive interviewed by claimed that as much as 40% of new business sales were being delivered through aggregators in 2009.Under base case scenario it is assumed that the tough market conditions in 2009 led to a decline of 3.2% in policies-in-force due to a reduction in penetration rates. However, 2010 will see a return to growth in policy numbers as recreational motorcyclists return to the market.Reasons to Purchase*Benchmark your performance against that of your competitors.*Plan your future motorcycle insurance strategy using Datamonitor's market size forecasts.*Keep abreast with the latest competitor developments taking place in the market.Table of Contents :"Overview 1Catalyst 1Summary 1EXECUTIVE SUMMARY 2Aggregators are causing a stir in the motorcycle insurance market 2The top three ! aggregators are pushing motorcycle insurance sales on their si! tes 2Agg regators are diminishing traditional motorcycle broker brands 2Groupama is growing its share rapidly in a market estimated to be worth £176m in 2009 2The market remains attractive though pillion passenger claims represent a risk to profitability 2Groupama has been making a big play in the market 3The return of the 'recreational biker' is central to the market achieving growth 3Table of Contents 4Table of figures 5Table of tables 6MARKET CONTEXT 7Introduction 7The motorcycle insurance market has attractive profit margins 7GWP contracted in 2009 as a result of the recession and strong competitive pressures in the market 7Aggregators are bringing dynamic changes to the market 7There are good margins to be had in the motorcycle insurance business 8The total motorcycle parc has continued to increase, though new registrations have declined significantly 9The number of registered motorcycles has been steadily increasing in Great Britain 9New motorcycle registrations fell by 9.0% i! n Great Britain in 2009 10Powerbikes continue to dominate the UK motorcycle parc, which is continuing to age 12More than half of motorcycles in Great Britain were first registered more than six years ago 12The number of motorcycles with engine sizes above 1,000cc have increased significantly in Great Britain 14Powerbikes comprise half of the top 10 models of motorcycles sold in the UK 16Improvements in road safety are positively impacting claims costs for insurers 17Greater awareness of road safety issues has resulted in a decline in the number of motorcycle casualties 17The risk of death or serious injury remains considerably higher for motorcyclists than other road users 19Claims frequency fell in the UK motorcycle market in 2008 21Claims costs relating to theft have been reduced significantly in 2008 22COMPETITIVE DYNAMICS 25Introduction 25Carole Nash has launched a policy covering cars and motorcycles 25Carole Nash introduced a new product that covers cars as well as mo! torcycles, and took over the Harley Davidson Insurance Scheme ! 25Saga l aunched a motorcycle insurance product for the over-50s 25Brokers continue to dominate the distribution of motorcycle insurance, although aggregators are emerging as a powerful force 26Carole Nash, Bennetts and Devitt are the largest distributors of motorcycle insurance in the UK 26Most aggregators offer comparison services for motorcycle insurance 27Groupama has made a big play in the market in recent years 27Five of the top 10 witnessed their premium income contract in the motorcycle insurance market 27Market leader Equity Red Star continued to witness a contraction in its motorcycle GWP 27AXA's premium income declined by 11.7% to £13.6m 27HSBC and QBE witnessed substantial falls in their premium income 27RSA experienced a 1.3% fall in its premium income 28Three of the top 10 witnessed growth in their motorcycle books of business in 2008 28Aviva and Groupama experienced double-digit growth in 2008 28RBS experienced modest growth in its motorcycle business during 2008 28Ad! vertising spending on motorcycle insurance has fallen considerably since 2006 31Competitors spent less of their advertising budgets on direct mail in 2008 31Bennetts significantly reduced its marketing spend on motorcycle insurance in H1 2009 32Devitt was the only motorcycle insurance advertiser to spend a proportion of its budget on direct mail advertising 34FUTURE DECODED 37Introduction 37Base case: moderate increases in price will lead to the market reaching £204.2m in GWP by 2014 37Underlying increases in the motorcycle parc and increases to price will result in moderate growth in GWP 37GWP is forecast to grow at a CAGR of 2.9% between 2010 and 2014 39Best case: strong price increases will drive GWP growth in the market 40Underwriters will achieve strong rate rises as competitive pressures ease in the market 40Strong rate increases will drive GWP upwards to £251.7m by 2014 42Worst case: GWP growth remains subdued after experiencing a significant fall in 2009 43Policie! s-in-force are expected to increase by an average annual rate ! of 3% be tween 2010 and 2014 43Motorcycle GWP is forecast to recover slowly under the worst case scenario 45APPENDIX 47Definitions 47Premium income measures 47Earned premiums 47Gross Premium 47Net Premium 47Written premiums 47Other definitions 47Channel 47Direct insurer/writer 47Brokers 47Bancassurers 47Brandassurers 48Platform 48Further reading 48Ask the analyst 48consulting 48Disclaimer 48List of TablesTable 1: UK motorcycle GWP, 2005-09 (£000) 8Table 2: Motorcycle and total vehicle parc in Great Britain, 2002-09 (000s) 10Table 3: Total number of new motorcycle registrations in Great Britain, 2002-09 (000s) 12Table 4: Motorcycle parc by age of first registration, 1999-2008 (000s) 14Table 5: Motorcycle parc in Great Britain by engine size, 1999-2008 (000s) 16Table 6: Top 10 motorcycle models in the UK, 2008 17Table 7: Road traffic casualties in Great Britain, 2001-08 19Table 8: Reported road casualties in Great Britain: relative risk of different forms of transport, 2008 (Rate per ! billion km) 21Table 9: Volume and frequency of motorcycle claims in the UK, 2004-08 22Table 10: Motorcycle theft claims statistics, 2004-08 24Table 11: Vehicle related theft offences, 1981-2008/09 (000s) 24Table 12: The top 10 UK motorcycle insurers by market share, 2005-08 30Table 13: The top 10 UK motorcycle insurers by GWP, 2005-08 (£000s) 31Table 14: UK motorcycle advertising spend by media, 2006-08 (£) 32Table 15: Advertising spend by competitor, 2006 to H1 2009, (£) 34Table 16: Motorcycle insurance advertising spend by competitor and media, H1 2009 36Table 17: Base case: key variables affecting motorcycle insurance GWP, 2010-14 39Table 18: Base case: forecast of UK motorcycle GWP, 2010-14f 40Table 19: Best case: key variables affecting motorcycle insurance GWP, 2010-14 42Table 20: Best case: forecast of UK motorcycle GWP, 2010-14f (£000) 43Table 21: Worst case: key variables affecting motorcycle insurance GWP, 2010-14 45Table 22: Worst case: forecast of UK motorcy! cle GWP, 2010-14f (£000) 46List of FiguresFigure 1: GWP contr! acted in the market in 2009 as a result of strong competitive pressures and fewer motorcycle sales 8Figure 2: There are clear margin benefits from playing in the niche motorcycle market 9Figure 3: The number of registered motorcycles in Great Britain reached 1.4 million in 2009 10Figure 4: New registrations of motorcycles fell significantly in Great Britain in 2009 11Figure 5: Most motorcycles in the British motorcycle parc were first registered between six and 13 years ago 13Figure 6: Powerful motorbikes are increasing as a proportion of the total motorcycle parc in Great Britain 15Figure 7: The number of motorcycle casualties have declined significantly since 2001 18Figure 8: Motorcyclists are more likely to be involved in serious accidents compared to other types of road users 20Figure 9: The total number of motorcycle claims notified to insurers fell in 2008 22Figure 10: Motorcycle theft claims costs continued to fall in 2008 23Figure 11: Saga launched a motorcycle insurance pol! icy for the over-50s 26Figure 12: Equity Red Star held a significant share in the UK motorcycle insurance market 29Figure 13: Competitors have been spending significantly less on advertisinFor more information please visit :http://www.aarkstore.com/reports/UK-Motorcycle-Insurance-2010-16399.html
Source :http://www.articlesbase.com/insurance-articles/uk-motorcycle-insurance-2010-market-research-reports-on-aarkstore-enterprise-2719310.html
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