Predictions for the General Insurance Market in 2022

It has never been easier to predict what will happen in the year ahead for the general insurance market. In fact, I can summarise it all in 1 word and 3 themes.

Themes for 2022

Rising Costs

Absolutely everything points to a substantial increase in the input costs of insurance across the board in 2022. In 2020/21 general insurers benefited from reduced claims due to COVID, but there is a bounce back cost increase that is now feeding through. There have been whispers in the market of a potential premium increase of up to 30% in 2022. I personally think that the increase will be lower than that, though double digit, almost certainly.

Consumer Backlash

With prices increasing and the economy opening up, there is a real chance that there might be a huge consumer backlash against insurers, stoked by the media. People who see large jumps in premium with their existing insurer and would like to switch but can’t get a cheaper price could fuel a further backlash.

Regulatory Scrutiny

In 2022, the FCA is going to have to stop sending people letters and get its red-line marker out. Those on the wrong side of the line will be fined. The fines won’t be small, they will be large. The FCA has been hiring data scientists, they have all the data and they will be asking firms to produce the evidence to explain their decision making.

The Word for 2022: "Dynamic"

When I pitched my word of the year to some of my friends and trusted advisors, they almost unanimously wanted me to change the word to “chaos”. But I believe 2022 will be a year of constant change, activity, and progress. Those that do well next year will be those who approach it with a positive attitude, full of energy and new ideas.

For our part, we see the change as positive and we can see that those who embrace it will not just survive but blossom. We are excited, we are positive for you and we hope that we can help bring energy, ideas, and confidence to you in the year ahead.

Track the Market

In response to the FCA’s general insurance pricing practices (GIPP) directive, we’ve developed and launched a unique new service that has been specifically designed for insurance brands to track changes across the market and help inform product proposition and pricing strategies.