IntroductionIn 2006, the commercial property insurance market contracted as soft market conditions took hold.
This brief provides an in-depth analysis of the current and future commercial property market in the UK, analyzing the key trends in premium income, claims and profitability.ScopeExtensive analysis of GWP and underwriting result are provided for the commercial property insurance market A discussion of trends in commercial property claims and issues that will effect future risks.
Three scenarios forecasting the market's GWP growth until 2011, based on primary research and in-house expertise.HighlightsCommercial property insurance GWP declined by 6.9 per cent in 2006 to £4.9 billion.
The principle driver for the decline was increased competition.
Commercial property claims costs decreased significantly in 2006, following a difficult year in 2005.
Claims costs resulting from fire and weather damage declined, and as a result, business interruption costs also moderated On balance the market is expected to have seen further rate decreases in 2006 and is forecast to see premium rate deflation in 2007.Reasons to PurchaseGain insight into the issues currently affecting the commercial property market's growth and profitability.
Understand the trends and recent developments within commercial property claims Develop your future commercial property strategy using Datamonitor's unique forecasts