Non-Standard Insurance Market Poised for Dynamic Growth by 2030, Prestige Underwriting Reports

Prestige Underwriting, in association with Aon’s Finaccord, predicts a period of unprecedented, dynamic growth in the non-standard insurance market through 2030. The report explores trends and growth predictions within various segments of this market. In the non-standard home segment, modular homes are projected to experience a notable compound annual growth rate of 1.6%. Thatched homes, recognized for their environmental credentials, are also expected to see stable growth, while second homes are forecasted to grow modestly by 0.5% annually.

One of the key concerns highlighted is the rising risk of geohazards like subsidence, with a projected 1.3% compound annual growth rate, affecting 6.5% of properties in Great Britain by 2030. This growth is attributed to factors like climate change.

In the non-standard motor segment, the report suggests potential challenges in the availability of electric cars in the UK, leading to a resurgence in imported grey vehicles. Grey cars are expected to grow at a compound annual rate of 3.3% from 2023 to 2030. High-performance cars, having reached 3.8 million by 2023, are forecasted to continue growing, albeit at a slower rate, with a compound annual growth of 7% expected.

Alison Williams, Managing Director at Prestige, emphasizes the importance of swift adaptability and specialized knowledge in capitalizing on this growth. The insights provided in the report are seen as crucial for insurers and brokers to understand the trajectory of the non-standard market and to leverage emerging opportunities effectively.

Carl McComb, Pricing and Actuarial Director at Prestige, notes that the report highlights disparities in growth across different sectors and underscores the need for increased flexibility in the insurance industry to address the diverse needs of consumers in a changing economic and climatic landscape.