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Pathway Report

Prestige Underwriting predicts remarkable growth in the UK non-standard insurance


In a market-first revelation, Alison Williams, Managing Director at Prestige Underwriting, predicts "unprecedented, dynamic growth" in the non-standard insurance sector up to 2030. The findings emerge from an extensive assessment conducted by Finaccord, an Aon company specializing in research and analysis for the insurance sector.

Commissioned by Prestige Underwriting, the Finaccord ‘Pathway Report’ delves into the intricacies of the non-standard market, unveiling trends, undercurrents, and growth projections from 2023 to 2030. The analysis provides valuable insights into various segments within the non-standard sector, shedding light on the driving forces and the anticipated scale of growth based on observed fluctuations.

Non-Standard Home

In the non-standard home segment, the forecast emphasizes the remarkable growth potential of modular homes, projected to expand at an impressive compound rate of 1.6% annually. Thatched homes, recognized for their environmental credentials, are poised for slower yet stable growth.

Conversely, the decline in overseas holiday homes is expected to result in a modest 0.5% compound annual growth in second homes. Unoccupied homes, influenced by factors such as the contraction of the private rental market, are forecasted to experience an acceleration with a compound annual growth rate of 1.2% each year. However, climate change looms large, with geohazard risks like subsidence anticipated to grow at a compound rate of 1.3% annually, putting 6.5% of all properties in Great Britain at risk of subsidence by 2030.

 Non-Standard Motor

For non-standard motor, the assessment reveals potential bottlenecks in the availability of electric cars in the UK, leading to a resurgence in the import of grey vehicles. The forecast indicates a compound annual growth rate of 3.3% for grey cars each year between 2023 and 2030.

The Finaccord Report also anticipates a continuous rise in both the number and share of high-performance cars, reaching 3.8 million by 2023. This trend is expected to persist beyond 2025, albeit at a decelerating pace, with high-performance cars forecasted to grow at an overall compound annual rate of 7% each year between 2023 and 2030.

Key insights for brokers, MGAs and insurers

Alison Williams explained her optimism about the potential era of unprecedented growth, "Swift adaptability to the evolving landscape, knowledge, and specialization will play a pivotal role in manifesting a positive outcome from the projected robust growth. Key skills we retain."

“The insights provided in this Report offer invaluable guidance to insurers and brokers, equipping them with a deeper understanding of the non-standard market's trajectory. By leveraging these insights, insurance brokers can proactively seize emerging opportunities and continue to deliver exceptional value to their policyholders in this ever-evolving insurance landscape.”

Carl McComb, Pricing and Actuarial Director at Prestige Underwriting, also emphasized the need for increased adaptability within the insurance sector. He said, “There will be significant expansion in key areas of the non-standard market by 2030 but also notable disparities, with growth exhibiting a checkered pattern across various sectors. Additionally, the Report emphasizes, from an actuarial standpoint, that the dynamic pace of economic inequality and climate change necessitates increased adaptability within the insurance sector. Meeting the diverse needs of consumers in this volatile and evolving landscape will demand a heightened level of flexibility.”

In conclusion, the insights provided in the Finaccord Report serve as a compass for brokers and insurers, enabling them to navigate the non-standard market's trajectory. By leveraging these insights, insurance professionals can proactively seize emerging opportunities and continue delivering exceptional value in this ever-evolving insurance landscape.