Insurance in the UK

Part
01
of two
Part
01

Tenant Content Insurance - UK

The estimated market size of the UK tenant content insurance was £928.8 million in 2018. The number of adults that had tenant content insurance was 6.88 million or 45% of all renters.

UK Tenant Contents Insurance Overview

  • According to the Sainsbury’s Bank Home Insurance research there were 8.41 million renters in the United Kingdom in 2018 that didn't have contents insurance.
  • The total number of renters in the UK was 15.29 million in 2018 and 55% of them didn't have contents insurance.
  • The number of renters that had tenant content insurance in the United Kingdom in 2018 was 6.88 million which equates to 45% of all renters. (Calculated)
  • The average price for tenants contents insurance is £135.
  • The tenant content insurance market size was around £928.8 million in 2018. (Calculated)

UK Other Insurance Markets

  • The percentage of adults that had motor insurance in the UK in 2017 was 61% while 36% had motor breakdown insurance.
  • The motor insurance cover had 31.14 million adults while 18.38 million had motor breakdown insurance in 2017. (Calculated)
  • The number of adults that had home contents insurance in the UK in 2017 was 30.7 million or 60% while 27.1 million or 53% had home buildings insurance.
  • Only 28% of all adults in the UK have life insurance which equates to 14.4 million people.
  • The number of people that had a critical illness cover in 2017 was 5 million or 10% of all adults.

Research Strategy

We first started our research by looking through various industry reports and publications including Mintel, IBIS World, SP Global and KPMG among others where we wanted to find the current market size for the UK tenant contents insurance. Most of these pages provided information about the home insurance market, but there was no data about the market size of the tenant insurance in the United Kingdom. However, we found two reports that were behind a paywall, one from Finnacord and the other by Mordor Intelligence that might have information about the tenant insurance market size in the United Kingdom.

Next, we scanned various government, insurance and other organizations such as Financial Conduct Authority (FCA), Association of British Insurers, Insurance Europe and others where we hoped to find the tenants contents insurance share in the total insurance market. These pages provided information about the value and the number of premiums written but there was no information about the tenants contents insurance share. The only relevant information that were able to find was the number of adults that have other types of insurance in the FCA’s Financial Lives Survey 2017.

Finally, we scanned various databases such as Statista and Finder, insurance companies blogs and news articles including Guardian, The Independent and others where we wanted to find the number of adults that have tenant contents insurance in the UK. We used this approach because we already found data about the number of adults that have other types of insurance and we hoped to be able to compare the figures. There was no data about the number of adults with tenant contents insurance on any of these pages but we did find the number of renters that don't have contents insurance in the United Kingdom in the Sainsbury's Bank Home Insurance research. Since, there was no other information about the current tenants content insurance market size available in the public domain we decided to use the data from the previously mentioned research to calculate the number of renters that have contents insurance in the United Kingdom and then use the average tenants contents insurance price to calculate the market size. We also calculated the number of adults that have motor and motor breakdown insurance. The overview of our calculations is presented below.

Please note that the average tenant insurance cost is for the period from January to June 2019 and the data about the number of renters with contents insurance is calculated based on the Sainsbury's Bank report from November 2018. We can assume that the number of renters that have contents insurance and the average cost hasn't changed to a greater extent in this time frame.

Calculations

Number of renters that had tenant contents insurance

Total number of renters = 15,288,151
Renters without contents insurance = 8,408,483

Renters with contents insurance = Total number of renters - Renters without contents insurance
Renters with contents insurance = 15,288,151 - 8,408,483
Renters with contents insurance = 6,879,668

Percentage of renters that had tenant contents insurance

Percentage of renters without contents insurance = 55%
Percentage of renters that have tenant contents insurance = 100% - 55%

Percentage of renters that have tenant contents insurance = 45%

UK tenant content insurance market size

Tenant content insurance average cost = £135
Renters with contents insurance = 6,879,668

UK tenant content insurance market size = Tenant content insurance average cost * Renters with contents insurance
UK tenant content insurance market size = £135 * 6,879,668

UK tenant content insurance market size = £928,755,180

Number of adults that had motor insurance

Number of adults = 51.05 million
Percentage of adults with motor insurance = 61%

Number of adults with motor insurance = (61% * 51.05 million) / 100
Number of adults with motor insurance = 31.14 million

Number of adults that had motor breakdown insurance

Number of adults = 51.05 million
Percentage of adults with motor breakdown insurance = 36%

Number of adults with motor breakdown insurance = (36% * 51.05 million) / 100
Number of adults with motor breakdown insurance = 18.38 million
Part
02
of two
Part
02

Tenant Content Insurance - Global

There are a calculated 157,845,938 renters in developed countries outside of Europe, the UK and the US worldwide.

Developed Countries and Their Rental Rates

  • World Population Review states "developed countries" are generally those whose Human Development Index is above 0.8. From this list, excluding Europe and the US, this leaves the countries of: Singapore, Hong Kong, Canada, New Zealand, Japan, Israel, South Korea, UAE, Qatar, Brunei, Saudi Arabia, Bahrain, Chile, Oman, Russia, Uruguay, Kuwait, Malaysia, Barbados and Kazakhstan.
  • Statista lists the countries with most number of renters. These include South Korea (44.8%), Japan (38.7%), New Zealand (36.3%) and Canada (33.5%).
  • The population for these countries is 51,225,308, 126,860,301, 4,783,063 and 37,411,047, respectively.
  • Another article expands upon this data and offers rental rates for other countries. Other available rental rates are Israel (28.3%), Russia (12.9%), Hong Kong (49%), Singapore (9.7%) and Australia (30.9%).
  • These countries' populations are 8,519,377, 145,872,256, 7,436,154, 5,804,337 and 25,203,198, respectively.
  • An unofficial survey of UAE residents found 70% said they rent, not own. UAE's population is 9,770,529.
  • According to one source, rental rates in Qatar are around 12%. Qatar's population is 2,832,067.
  • The latest population survey in Brunei is from 2011. Out of 65,393 housing units, 11,230 were occupied by private individuals, which was inferred to be the closest category to an average renter. This equals 17.2%. Brunei's population is 433,285.
  • 46.2% of households in Saudi Arabia rent. Saudi Arabia's population is 34,268,528.
  • Bahrain's official government statistics only go up to 2001, unfortunately. In this year, there were a recorded 47,618 rental households.
  • Chile's rental rate is around 20%, according to an OECD graph (no firm figures were available). Chile's population is 18,952,038.
  • Uruguay has around 18.5% tenants. This country's population is 3,461,734.
  • Malaysian rental rates are around 30%. The population here is 31,949,777.
  • Kazakh rental rates are extremely low, around 5%. The country's population is 18,551,427.
  • The countries with missing rental data are Oman, Kuwait and Barbados. These countries' populations are 4,974,986, 4,207,083 and 287,025 respectively.

Research Strategy

We first successfully identified which countries outside of the US, UK and Europe are considered "developed countries". Using this, we then individually researched the rental/tenancy rates for each country, as well as the country's population in order to find the number of tenants in each country. After an extensive search, we concluded rental information was not available for Oman, Kuwait and Barbados, so unfortunately the number of renters in these countries have been excluded from the overall total. However, with relatively small populations, these countries would likely not significant impact the overall total. We browsed OECD data, official government statistics portals and news articles about the real estate market for each country.

Finally, we added the calculated rental population for each country to arrive at a grand total of 157,845,938 people residing in rented accommodation in developed countries globally.

CALCULATIONS

South Korea 44.8% x 51,225,308 =22,948,938
Japan 38.7% x 126,860,301 = 49,094,936
New Zealand 36.3% x 4,783,063 = 1,736,252
Canada 33.5% x 37,411,047 = 12,532,701
Israel 28.3% x 8,519,377 = 2,410,984
Russia 12.9% x 145,872,256 = 18,817,521
Hong Kong 49% x 7,436,154 = 3,643,715
Singapore 9.7% x 5,804,337 = 563,021
Australia 30.9% x 25,203,198 = 7,787,788
UAE 70% x 9,770,529 =6,839,370
Qatar 12% x 2,832,067 =339,848
Brunei 17.2% x 433,285 = 74,525
Saudi Arabia 46.2% x 34,268,528 = 15,832,060
Bahrain's official government statistics recorded 47,618 rental households. At an average 5.9 persons per household, this equals 280,946 renters.
Chile 20% x 18,952,038 = 3,790,408
Uruguay 18.5% x 3,461,734 = 640,421
Malaysia 30% x 31,949,777 = 9,584,933
Kazakhstan 5% x 18,551,427 = 927,571

TOTAL: 157,845,938

Sources
Sources