We present the results of our analyses of the performance of the UK motor market for the year ending 31 December 2024, along with commentary on market issues up to the publication date. Our report focuses on the two Solvency II lines of business covering motor insurance: motor vehicle liability and other motor. The analyses rely mainly on information contained in the quantitative reporting templates in the 2024 year-end solvency and financial condition reports of UK motor insurers.

Highlights

• Motor gross written premiums (GWP) increased to £22.3 billion in 2024, up from £18.4 billion in 2023.
• Premium levels are being influenced by inflation and regulatory scrutiny around fair value and pricing.
• Over the last four years, the proportion of GWP allocated to motor vehicle liability has declined relative to other motor.
• The gross loss ratio for the 36 companies in our sample was 74.4% in 2024, down 10 percentage points from 2023.
• Motor insurance payouts totalled £11.7 billion.
• Motor insurance prices surged by 8.3%, outpacing wage growth of 5.6%.
• The UK personal lines motor market has observed some significant mergers, acquisitions and partnerships over the past year.
• The UK government now states that fully autonomous vehicles are unlikely before the second half of 2027 (the previous target was 2026).
• At the end of 2024, battery electric vehicles made up approximately 4% of all registered cars and accounted for almost 20% of new car registrations.
• Around 2 million new private cars were registered during the period, a 2.7% increase from the end of 2023.
• Around 2.5 million new commercial vehicles were registered, a 3.1% increase from the end of 2023.