UK Internet of Things (IoT) Insurance Market Research Report By End User (Individual, Small and Medium Enterprises, Large Enterprises), By Type of Insurance (Health Insurance, Property Insurance, Liability Insurance, Cyber Insurance), By Technology Used (Wearables, Smart Home Devices, Connected Vehicles, Industrial IoT) and By Application (Telematics, Smart Home Monitoring, Health Monitoring, Asset Tracking)- Forecast to 2035

UK Internet of Things (IoT) Insurance Market Overview

As per MRFR analysis, the UK Internet of Things IoT Insurance Market Size was estimated at 255 (USD Million) in 2023.The UK Internet of Things IoT Insurance Market Industry is expected to grow from 291(USD Million) in 2024 to 1,457 (USD Million) by 2035. The UK Internet of Things IoT Insurance Market CAGR (growth rate) is expected to be around 15.77% during the forecast period (2025 - 2035)

Key UK Internet of Things IoT Insurance Market Trends Highlighted

The UK Internet of Things (IoT) insurance industry is growing quickly since IoT devices are being used more and more in many areas, such as healthcare, cars, and home automation. One of the main reasons for the growth of the market is the growing requirement for risk management as enterprises and people look for full protection against any cyber threats and liabilities. The UK government's emphasis on digital innovation and technology alignment aims to enhance competitiveness, providing a favourable environment for insurers to innovate and create tailored products for IoT users. In our changing world, there are many chances to be taken advantage of.

Insurers can create plans that are tailored to cover specific IoT-related risks, such as data breaches or equipment breakdowns. This makes insurance products more in line with how technology is changing. As more businesses use IoT in their work, the need for usage-based insurance models is anticipated to grow. These models let clients pay premiums based on how much they actually use the service instead of on aggregated data. Recent trends show that technology companies and insurance companies are working together more and more, which is leading to more integrated solutions that can help and monitor things in real time. Smart gadgets in cars are changing the way motor insurance works, while linked home devices are changing the way homeowners' insurance works.

The rise of telematics in commercial vehicles is also affecting fleet insurance policies, which use data-driven insights to lower risks. Overall, the UK IoT insurance market is ready for new ideas and growth because of changes in technology and changing customer needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

UK Internet of Things IoT Insurance Market Drivers

Growing Adoption of Smart Devices in the UK

The increasing adoption of smart home devices and wearables drives the UK Internet of Things IoT Insurance Market Industry. According to a report from the Office for National Statistics, in 2021, approximately 87% of households in the UK owned at least one smart device, a clear indication of the growing trend. This surge in smart gadgets leads to more data generation and connectivity, increasing the potential need for specialized insurance solutions that address risks related to device malfunction or cyber threats.

Major insurers like Aviva and Allianz have recognized this trend and are developing tailored insurance products for IoT devices, indicating competitive growth in the market. As these devices become integral in homes, the demand for IoT insurance solutions is certain to rise, thereby fostering market growth.

Implementation of Smart City Initiatives

The UK government has been investing in Smart City initiatives to enhance urban living standards and operational efficiencies. The Ministry of Housing, Communities and Local Government has earmarked significant funds for developing smart infrastructure, which is anticipated to include IoT technologies. With cities like London integrating detectable waste management systems, traffic management, and environmental monitoring, this creates new insurance needs for municipal services and infrastructures.

Insurers are likely to offer solutions that cover risks associated with these technologies, thereby boosting the UK Internet of Things IoT Insurance Market Industry potential. The realization and implementation of such projects can revolutionize the insurance landscape as they create an array of risks that were not previously covered.

Increased Awareness of Cybersecurity Risks

The rise in connectivity of IoT devices has heightened concerns regarding cybersecurity threats. As per data from CyberUK, a government initiative, over 70% of UK companies reported cyber incidents in the last year, showcasing the urgent necessity for enhanced cyber insurance coverage. This growing awareness among businesses and consumers is fueling demand for IoT insurance products that address these risks specifically. 

Insurers, recognizing this trend, are starting to package IoT insurance policies with robust cybersecurity measures.Companies like RSA Insurance Group are launching new products that include risk assessment and cybersecurity coverage tailored specifically for IoT. This increasing need for cybersecurity solutions directly contributes to the growth of the UK Internet of Things IoT Insurance Market Industry.

UK Internet of Things IoT Insurance Market Segment Insights

Internet of Things IoT Insurance Market End User Insights

The UK Internet of Things IoT Insurance Market is characterized by its diverse end-user landscape, which includes Individuals, Small and Medium Enterprises, and Large Enterprises. This segmentation reflects the varied needs for IoT insurance across different types of users and their unique risk profiles. Individuals are increasingly adopting smart devices, leading to a growing demand for insurance solutions that protect personal data and smart homes against cyber threats and operational failures. Small and Medium Enterprises represent a crucial segment given their agility and versatility in leveraging IoT technology, which enhances efficiency but often leaves them vulnerable to risks that lack comprehensive coverage.Protecting these businesses through tailored IoT insurance is vital, as they form the backbone of the UK economy and are significant contributors to job creation. 

Large Enterprises, on the other hand, dominate the market due to their scale of operations and the complex risk scenarios they encounter. These organizations are more likely to invest in sophisticated IoT systems, which necessitate advanced insurance solutions to safeguard against systemic failures, data breaches, and regulatory compliance issues. The market dynamics are influenced by the rapid evolution of technology, prompting all end users to seek innovative insurance products that cater to the challenges presented by IoT.Additionally, government initiatives aimed at promoting digital transformation are anticipated to bolster insurance uptake across all sectors, highlighting the importance of embracing IoT insurance solutions to mitigate potential risks associated with technological advancements. As competition in the IoT insurance space intensifies, insurers are likely to develop more customized policies to meet the distinct needs of each segment, underscoring an ongoing trend towards specialization in the market. 

The interplay between technological adoption and risk management across the end-user segments makes understanding these dynamics crucial for stakeholders aiming to navigate the evolving landscape of the UK Internet of Things IoT Insurance Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Internet of Things IoT Insurance Market Type of Insurance Insights

The UK Internet of Things IoT Insurance Market thrives on diverse insurance types under its umbrella, including Health Insurance, Property Insurance, Liability Insurance, and Cyber Insurance. Each of these insurance types plays an essential role in defining the market's structure and opportunity landscape. Health Insurance, for instance, leverages IoT devices to enhance patient monitoring and provide real-time health data, improving customer trust and reducing premiums. Property Insurance increasingly adopts IoT technologies to assess risks and prevent damages in real time, thus transforming traditional approaches to risk management.Liability Insurance is significant due to the growth of connected devices, raising concerns over accountability and the need for coverage against various liabilities arising from IoT integration. 

Meanwhile, Cyber Insurance has emerged as a crucial component, reflecting the rising incidences of cyber threats against IoT devices, making it vital for businesses to protect themselves against potential cyber liabilities. Overall, each type of insurance not only caters to distinct consumer needs but also capitalizes on the technological advancements within the IoT landscape in the UK, significantly driving the market's growth.

Internet of Things IoT Insurance Market Technology Used Insights

The UK Internet of Things IoT Insurance Market has been experiencing significant growth within the Technology Used segment, driven by advancements in connectivity and smart technologies. Wearables are increasingly becoming essential in health monitoring and insurance assessments, enabling insurers to offer personalized policies based on real-time health data. Smart Home Devices also play a crucial role, providing enhanced home security and risk assessments, thus attracting a growing number of policyholders seeking coverage for their smart environments.

Connected Vehicles are transforming the landscape of insurance with telematics-based policies, where driving behavior can directly influence premiums, promoting safer driving habits among users. Lastly, Industrial IoT is revolutionizing the insurance sector by offering greater insights into machinery and equipment risk profiles, thus facilitating more tailored and proactive insurance solutions. Collectively, these innovative technologies not only inform UK Internet of Things IoT Insurance Market segmentation but also present unique growth drivers and challenges as insurers adapt to the digital landscape and consumer demands for more personalized and efficient coverage solutions.

Internet of Things IoT Insurance Market Application Insights

The UK Internet of Things IoT Insurance Market has gained significant momentum, particularly within the Application segment, which encompasses various critical areas including Telematics, Smart Home Monitoring, Health Monitoring, and Asset Tracking. Telematics stands out as a primary focus, leveraging real-time data to enhance risk assessment and driving premium reductions for policyholders, essentially transforming traditional auto insurance models. Smart Home Monitoring is also crucial as it caters to the rising demand for home safety and security, providing insurers with enhanced risk mitigation pathways.

Health Monitoring applications have gained traction, particularly in aging populations, allowing for proactive health management and reducing overall healthcare costs. Asset Tracking holds substantial importance for businesses, enabling enhanced surveillance of valuable equipment and reducing loss, which is paramount in sectors such as logistics and manufacturing. The growing adoption of IoT technologies and increasing awareness regarding the benefits of these solutions are driving the market's progress, while regulatory frameworks in the UK are also creating supportive conditions for innovation and growth in insurance applications.

UK Internet of Things IoT Insurance Market Key Players and Competitive Insights

The UK Internet of Things (IoT) Insurance Market is experiencing a significant transformation as technological advancements reshape conventional insurance practices. With the integration of smart devices and sensors into everyday life, insurers are increasingly leveraging IoT data to enhance underwriting, streamline claims processes, and personalize customer experiences. This development creates a dynamic competitive landscape, where insurance providers must innovate rapidly to meet emerging customer needs while also grappling with the associated risks and regulatory challenges. Companies that effectively harness IoT technology can gain a competitive edge by offering tailored products, improving operational efficiencies, and enhancing risk management strategies, which are becoming critical determinants of success in this rapidly evolving market.

Admiral Group has emerged as a significant player within the UK Internet of Things IoT Insurance Market, capitalizing on its well-established reputation for providing affordable and flexible insurance solutions. The company's strengths lie in its customer-centric approach and its ability to leverage data analytics to gain insights into customer behavior and risk assessment. By incorporating IoT technology into its insurance offerings, Admiral Group is able to create personalized policies that cater specifically to individual customer needs, thereby enhancing customer retention and satisfaction. Furthermore, the company's commitment to innovation is evident in its investment in new technologies and partnerships, which positions it favorably in the competitive UK market. As the demand for smart insurance solutions continues to grow, Admiral Group's proactive strategies and adaptability are likely to fortify its market presence.

Key Companies in the UK Internet of Things IoT Insurance Market Include

• Admiral Group
• Direct Line Group
• AXA
• Aviva
• RSA Insurance Group
• Legal & General
• Allianz
• AIG
• Zurich Insurance Group
• Lloyd's of London

UK Internet of Things IoT Insurance  Industry Developments

The UK Internet of Things (IoT) Insurance Market has seen significant developments in recent months. Many companies are increasingly focusing on incorporating IoT solutions into their offerings, such as Admiral Group, which has made strides in telematics insurance, providing personalized premiums based on driving data. In late 2022, Direct Line Group announced its partnership with various technology firms to enhance its IoT capabilities for home insurance. Significant mergers and acquisitions have taken place, particularly with AXA acquiring a tech startup in May 2023 to broaden its IoT insurance solutions. 

Aviva has been actively investing in smart home technology, reflecting the trend of integrating IoT devices into traditional insurance products for improved risk assessment. The overall focus on sustainable practices within the insurance sector has also been noteworthy, with companies like Zurich Insurance Group advocating for eco-friendly IoT applications for property insurance. The IoT insurance landscape is rapidly evolving, driven by technological advancements and changing consumer expectations, marking a pivotal time for the industry in the UK.

UK Internet of Things IoT Insurance Market Segmentation Insights

Internet of Things IoT Insurance Market End User Outlook

• Individual
• Small and Medium Enterprises
• Large Enterprises

Internet of Things IoT Insurance Market Type of Insurance Outlook

• Health Insurance
• Property Insurance
• Liability Insurance
• Cyber Insurance

Internet of Things IoT Insurance Market Technology Used Outlook

• Wearables
• Smart Home Devices
• Connected Vehicles
• Industrial IoT

Internet of Things IoT Insurance Market Application Outlook

• Telematics
• Smart Home Monitoring
• Health Monitoring
• Asset Tracking

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	255.0(USD Million)
MARKET SIZE 2024	291.0(USD Million)
MARKET SIZE 2035	1457.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	15.77% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Admiral Group, Covéa Mutual Insurance Group, Generali, Direct Line Group, AXA, Wolverhampton Insurance, Aviva, RSA Insurance Group, Legal & General, Thistle Insurance Services, Allianz, AIG, Zurich Insurance Group, Lloyd's of London
SEGMENTS COVERED	End User, Type of Insurance, Technology Used, Application
KEY MARKET OPPORTUNITIES	Personalized insurance premium models, Real-time data usage for claims, Increased demand for cyber coverage, Integration with smart home devices, Usage-based insurance products expansion
KEY MARKET DYNAMICS	data privacy regulations, rising connected devices adoption, increased automation in claims, enhanced risk assessment capabilities, growing consumer awareness
COUNTRIES COVERED	UK