The U.K. motor insurance market is entering a new growth phase, shaped by regulatory reforms, telematics adoption, and digital claims management. By 2025, the market is projected to reach £18.5 billion in gross written premiums (GWP), expanding to £22.7 billion by 2030, reflecting a CAGR of 4.1%. Rising vehicle ownership, EV penetration, and the recovery of post-pandemic travel demand are key drivers of premium expansion.
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Claims dynamics are shifting, with average repair costs rising 6–8% annually due to advanced driver assistance systems (ADAS) and EV parts, while digital-first claims processing is reducing settlement times by 25–30%. Telematics-based policies are expected to represent 20–25% of new policies by 2030, improving risk assessment and lowering premiums for safe drivers. Insurtech players are capturing market share through AI-driven underwriting and usage-based insurance models, while traditional insurers adapt with hybrid offerings.
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The U.K. motor insurance market is no longer defined by legacy underwriting it is evolving into a tech-driven, consumer-focused sector, balancing premium growth with innovation in claims and policy management.

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5 Key Quantitative Takeaways (2025–2030, U.K.):
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• Market size (GWP): £18.5B → £22.7B (CAGR 4.1%)
• Average repair cost inflation: 6–8% annually
• Settlement time reduction via digital claims: 25–30%
• Telematics penetration: 20–25% of new policies by 2030
• EV ownership driving premium growth: +12–15% uplift vs ICE vehicles

Download the full report to explore premium growth drivers, claims management innovation, and competitive strategies in the U.K. motor insurance market.

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