Insurance Webinar Series 2020: Market Insights & Trends in the Motor Insurance Industry
17 June 2020
© 2020 Deloitte. All rights reserved2
Insurance Webinar Series 2020: Market Insights & Trends in the Motor Insurance Industry
July 8, 2020 July 22, 2020
Today’s Speakers
Paul Connor
Director, Non-Life Insurance
Deloitte Ireland
Mark Patterson
Partner, Global General Insurance Lead
Deloitte UK
2 2 2
June 17, 2020
Life & Pensions webinar
New world, new customers, new solutions – are
insurers really in a position to
respond?
1 2
Non-life webinarNew world, new customers, new solutions – are
insurers really in a position to respond?
3 Market Insights &
Trends in the Motor Industry
Webinars
Cillian Dickson
Assistant Manager, Actuarial, Rewards and Analytics
Deloitte Ireland
Irish Insurance MarketEnvironment and Market Analysis
Paul Connor & Cillian Dickson, Deloitte17 June 2020
© 2020 Deloitte. All rights reserved4
Irish Non Life Insurance Market
• CBI Insurance Statistics
• Central Statistics Office (CSO)
• Department of Transport, Tourism and Sport
• Road Safety Authority
• Solvency and Financial Condition Reports
• Insurance Ireland Factfiles
• Personal Injuries Assessment Board
• An Garda Síochána
• Government of Ireland (Gov.ie)
• Transport Infrastructure Ireland
Data Sources
© 2020 Deloitte. All rights reserved5
Irish Non Life Insurance MarketMilestones
Jul 2019
Apr2020
Restrictions
Nov 2019
Dec 2019
9th progress updateHegarty vs HSE PPO
ruling
Amendments to non-life insurance renewals
NCID
Capping damages in personal injuries
Mar 2020
Jun 2020
10th progress update
Consumer insurance contracts act
Personal injuries
guideline committee
6© 2020 Deloitte. All rights reserved
Irish Non-Life Market
© 2020 Deloitte. All rights reserved7
Source: 2012-2017 Insurance Ireland Factfile
* 2018 is a market estimate
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016 2017 2018*
GW
P (
€m
)
GW
P (
€m
)
Motor Property Liability PA/Travel Other Classes Total
-6% +3%
+8%
+14%
+8% ~2%
Gross Written Premium
Irish Non-Life Market
© 2020 Deloitte. All rights reserved8
Source: 2013 Prior: CBI Insurance Statistics, 2014-2017 Insurance Ireland Factfile
* 2018 is a market estimate
74%
89%78%
63%71% 72%
77%83%
76%68%
9%
10%
11%
11%
12% 13%11%
11%
8%
6%
19%
17%
19%
21%
24% 22%23%
24%
18%
22%
102%
116%
108%
95%
107% 107%111%
118%
102%
96%92-95%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Claims Ratio Commission Ratio Management Expense Ratio
Irish Non-Life Insurance MarketHistorical Net Combined Operating Ratios
© 2020 Deloitte. All rights reserved9
Irish Non-Life Insurance Market2019 Net and Gross Total Combined Operating Ratios
Combined Operating Ratio = Claims Ratio + Expense Ratio
*Aviva excluded from market average
Source: 2019 SFCRs
Market
Average*
• Net claims ratio
• Net expense ratio
• Gross claims ratio
78%71%
55% 53% 56% 55%43%
37%
61% 57% 56% 56%49% 48%
56% 54%
45%
36% 30%
30%
46%
33%42%
35%
123%
90%87%
73%
107%
89% 91% 90%
© 2020 Deloitte. All rights reserved10
Irish Non-Life Insurance Market2019 Gross Written Premium v Net Combined Operating Ratio
AIG
Allianz
Aviva
AXA
FBD
Liberty
RSAZurich
50%
60%
70%
80%
90%
100%
110%
120%
130%
140%
200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000
Net
CO
R
GWP
Combined Operating Ratio = Claims Ratio + Expense Ratio
Source: 2018 and 2019 SFCRs
11© 2020 Deloitte. All rights reserved
Irish Motor Market
© 2020 Deloitte. All rights reserved12
Net Combined Operating Ratios
Irish Motor Market
Source: 2012-2017 Insurance Ireland Factfile, CBI Insurance Statistics
* 2018 COR are market estimates
75%
87% 84%
69% 72%78%
94%99%
82%72%
5%
6% 7%
7%8%
8%
7%
8%
5%
4%
20%
17% 19%
21%23%
21%
20%
23%
17%
21%
100%
110% 110%
98%103%
107%
121%
129%
104%
97%~90%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Claims Ratio Commission Ratio Management Expense Ratio
© 2020 Deloitte. All rights reserved13
81%
61% 64% 64% 70% 69% 63% 62%74%
58% 52% 45% 44%52%
158%
89%100%
90% 85%
66% 70% 66%
17%
24%31% 35%
33% 30%28% 29%
26%
25%26%
29%
77%
84%
51%
36%
41%
9%
41%
40% 32%25%
98%
85%
95%99%
103%99%
91% 91%
100%
83%79%
74%
121%
137%
209%
125%
141%
99%
126%
106%101%
91%
Source: 2018 and 2019 SFCRs
Average*
• Loss Ratio 2018
• Expense Ratio 2018
• Loss Ratio 2019
• Expense Ratio 2019
• Loss Ratio 2017
• Expense Ratio 2017
• Loss Ratio 2016
• Expense Ratio 2016
Irish Motor MarketNet Combined Operating Ratios
© 2020 Deloitte. All rights reserved14
Irish Motor MarketGross written premium and new vehicles registered
Source: 2012-2017 Insurance Ireland Factfile, CBI Insurance Statistics
* 2018 GWP are market estimates
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
-
50,000
100,000
150,000
200,000
250,000
2012 2013 2014 2015 2016 2017 2018 2019
GW
P (
€m
)
No
. Veh
icle
s
New Cars Imports GWP Private vehicles GWP Commercial vehicles
© 2020 Deloitte. All rights reserved15
€498 €508€492
€459€435 €446
€496
€602
€690 €706
€0
€100
€200
€300
€400
€500
€600
€700
€800
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Irish Private Motor MarketGEP per policy
Source: NCID
+15%
+21%
+11%
+3%
+2% -3%-7%
-5%
+2%
© 2020 Deloitte. All rights reserved16
Irish Motor MarketAverage cost of claim per policy vs average gross earned premium per policy
• Source: NCID
€706
60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
€0
€100
€200
€300
€400
€500
€600
€700
€800
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Third Party Injury Accidental Damage Fire and Theft Third Party Damage Windscreen Gross Earned Premium Claims Ratio
© 2020 Deloitte. All rights reserved17
• Source: NCID
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Third Party Injury Accidental Damage Fire and Theft Third Party Damage Windscreen Overall claim frequency
Irish Motor MarketClaims frequency
© 2020 Deloitte. All rights reserved18
€0
€10,000
€20,000
€30,000
€40,000
€50,000
€60,000
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Average cost of third party injury claims CPI Motor car insurance Insurance Petrol
Irish Motor MarketAverage cost of third party injury claims vs inflation
• Source: NCID, CSO, Base year =2015
% increase 2009 -2018
Average cost of 3rd party injury claim
Motor car insurance inflation
+54%
+38%
© 2020 Deloitte. All rights reserved19
Irish Motor MarketAverage cost per injury claim based on settlement channel
• Source: NCID
88%
93%
63%
87%
93%
63%
85%
93%
66%
84%
92%
67%
9%
2%
34%
10%
3%
34%
10%
4%
32%
12%
5%
33%
3%
5%
3%
4%
4%
3%
4%
4%
2%
4%
3%
1%
€0
€10,000
€20,000
€30,000
€40,000
€50,000
€60,000
€70,000
€80,000
Direct PIAB Litigated Direct PIAB Litigated Direct PIAB Litigated Direct PIAB Litigated
2015 2016 2017 2018
Compensation Legal Other
© 2020 Deloitte. All rights reserved20
€18,500
€19,000
€19,500
€20,000
€20,500
€21,000
€21,500
€22,000
€22,500
€23,000
€23,500
€24,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Irish Motor MarketInjuries Board – Average Motor Award
€23,234+3%
€22,454+5%
€21470+1%
€21,215-2%
€21,730+5%
€20,631+1%
€20,438-2%
€20,898-4%
€22,682-2%
Source: Injuries Board Ireland
© 2020 Deloitte. All rights reserved21
Irish Motor MarketRoad Fatalities
Source: CSO, RSA*2020 is an estimate
15,500
16,000
16,500
17,000
17,500
18,000
18,500
19,000
19,500
0
50
100
150
200
250
300
350
400
450
500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *2020
Kms
trav
elle
d
Fata
litie
s
22© 2020 Deloitte. All rights reserved
Effects of Covid-19 on theIrish Motor Market
© 2020 Deloitte. All rights reserved23
Irish Motor MarketAnnual private vehicle sales
Source: CSO
0
50,000
100,000
150,000
200,000
250,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
© 2020 Deloitte. All rights reserved24
Irish Motor MarketRoad usage
Source: Transport Infrastructure Ireland (TII)
© 2020 Deloitte. All rights reserved25
Irish Motor MarketRoad usage
Source: Transport Infrastructure Ireland (TII)
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