The Classic Car Insurance industry generates revenue from two main sources: premium income and investment income. However, premium income accounts for bulk of revenue and is estimated to account for 84.7% of industry revenue in 2014-15. There are many different types of classic car insurance policies, including comprehensive cover, laid-up cover, and third-party, fire and theft cover. The level of risk and the premium prices vary considerably, depending on the type of policy.
The industry has faced challenging conditions over the past five years. Over the five years through 2014-15, consumer confidence and real disposable income declined sharply and has remained weak.
Industry participants underwrite (i.e. assume the risk for and assign premiums to) classic car insurance policies. According to HMRC, any car that is over 15 years old and has a market value of at least £15,000 is a classic car, but insurers can vary in their definition. The level of risk assumed and the cost of an insurance premium vary according to the type of insurance policy being underwritten.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.