Overview

Introduction

This profile provides an overview of Zurich' s UK personal general insurance business, focusing on product and distribution strategy, in addition to the company' s performance in its key lines of business

• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 2 ZURICH: UK PERSONAL GENERAL INSURANCE COMPETITOR PROFILE 2006
  • Zurich Financial Services is a general and life assurer with an emphasis on North America and Europe
    • Zurich Financial Services is one of the largest insurance groups in the world
    • The UK is the second largest contributor to Zurich' s worldwide general insurance business
  • Zurich' s personal lines business is smaller than its commercial arm, however, household and motor have grown at a steady rate
    • Zurich' s general insurance book is weighted towards commercial business
    • Zurich' s household and private motor books have grown at similar rates to the respective markets since 2001, but the company pulled back from competition in 2005
    • Its combined ratio increased in 2005, but Zurich UK saw net earned premiums decrease as part of its commitment to underwriting discipline
    • 2006 has been a tough year for Zurich
  • Zurich' s UK personal lines strategy will see it respond to increasing market competition as well as maximizing the efficiency of its value chain
    • Zurich is responding to market pressures with plans to move to a more customer focused approach and to leverage some of the pan-European strategies of Zurich European General Insurance
    • Zurich is undertaking a number of initiatives to maximise the effectiveness of its UK value chain
    • Zurich spent £4.1 million on advertising in 2005, the majority of which was spent on motor insurance
  • Zurich' s general insurance book is heavily intermediated
    • Zurich distributes personal lines business to over 3,000 brokers and is held in high esteem by its brokers
    • Zurich is taking a cautious approach to the direct channel but will seek to boost its corporate partners' business
    • Zurich has restructured its UK business along distribution capabilities
  • Zurich will be maintaining its intermediary focus while moving towards a more customer centric approach and seeking to maximise efficiency in the UK value chain
    • Zurich will be taking a cautious approach to direct distribution and continuing with its emphasis on intermediated business
    • Zurich intends to take a more customer orientated approach and generate efficiencies along the value chain
• CHAPTER 3 APPENDIX
  • Supplementary data
  • Methodology
    • Competitor data
      • GWP versus GEP reporting
      • Major changes in FSA Return categories and their impact
    • Market size
      • Changes in market size information
  • 2005 definitions for lines of business
    • Accident & health
    • Motor
      • Total private motor
      • Private motor comprehensive
      • Private motor non-comprehensive
      • Motorcycle
    • Property
      • Household and domestic all risks.
    • Financial/Pecuniary loss business
      • Total personal financial loss business
    • Total personal
    • Total commercial
  • Ratio analysis by competitor
  • Premium income measures
    • Earned premiums
    • Gross Premium
    • Net Premium
    • Written premiums
  • Research methodology
    • Datamonitor' s Personal Broker Survey
  • Current readings
  • Future readings
  • Do you need more information?
    • Datamonitor Financial Services Consulting
  • SPP writing team
  • List of Tables
    • Table 1: Zurich FS general insurance GWP & policy fees by geography, 2005
    • Table 2: Split between personal and commercial business for Zurich, 2005
    • Table 3: Zurich' s growth rates and share of personal GWP by line of business compared to the market, 2005
    • Table 4: Zurich' s personal lines premium income split by line of business, 2001-5
    • Table 5: Key statistics relating to Zurich' s personal lines book, 2001-5
    • Table 6: Zurich UK key profit metrics, 2004-5
    • Table 7: Zurich' s advertising spend by product, 2005
    • Table 8: Zurich' s advertising spend by media, 2005
    • Table 9: Do you enjoy dealing with any particular insurer?
  • List of Figures
    • Figure 1: Zurich UK general insurance forms part of Zurich European General Insurance
    • Figure 2: Zurich UK, at £2.2 billion GWP, made a significant contribution towards Zurich' s worldwide general insurance business
    • Figure 3: Zurich' s book was heavily weighted towards commercial business in 2005
    • Figure 4: Zurich' s household and private motor books have grown at a similar rate to the overall household and private motor markets between 2001 and 2005
    • Figure 5: Zurich has seen steady growth in its household insurance book between 2001 and 2005
    • Figure 6: Zurich UK' s business operating profit fell by 23.8 per cent in 2005 to £277 million
    • Figure 7: Zurich will focus on all three distribution channels in personal lines and move to a more customer centric approach
    • Figure 8: Zurich UK intends to maximize the efficiency of its value chain in personal lines
    • Figure 9: Zurich spent the majority of its advertising budget on motor insurance in 2005
    • Figure 10: Zurich spent over 80 per cent of its advertising budget on direct mail
    • Figure 11: Zurich focuses heavily on the broker channel
    • Figure 12: Brokers particularly enjoy dealing with Zurich and Norwich Union