Least Risky Industries in the UK in 2022

1. Shipbuilding in the UK

2022 Overall Risk Score: 3.10

Industry operators build military vessels for the Royal Navy and foreign governments. Industry revenue is anticipated to expand at a compound annual rate of 1.5% over the five years through 2022-23 to reach £6.3 billion. This includes revenue growth of 0.5% in 2022-23. Import competition in the passenger ship segment has remained intense over the past five years due to lower production costs in Europe and Asia. Nevertheless, exports are expected to account for 19.5% of industry revenue in 2022-23.

Industry revenue growth has been supported by the construction of Queen Elizabeth class aircraft carriers. The weak pound also led to... Learn More

2. Chemical & Fertiliser Mineral Mining in the UK

2022 Overall Risk Score: 3.26

The Chemical and Fertiliser Mineral Mining industry has been subject to volatile conditions over the past five years. The industry transitioned to the production of polyhalite, which led to a substantial reduction in potash prices and significant revenue decline for much of the past five years. However, production of polyhalite in 2018 has given the industry a new lease of life. Cleveland Potash Ltd, the largest firm in the industry, has transitioned into a polyhalite-only mining business. Industry players were able to continue production despite the COVID-19 (coronavirus) outbreak, with firms implementing social distancing measures and other safety measures to... Learn More

3. Reinsurance in the UK

2022 Overall Risk Score: 3.50

Over the five years through 2021-22, industry revenue is anticipated to increase at compound annual rate of 4.5%. Over the past five years, premium income has increased supported by regulatory changes such as Solvency II, changes in the Ogden rate and the implementation of the Data Protection Act 2018. A rising number of natural disasters that have necessitated insurance claims have prompted an increase in premium pricing.

The COVID-19 (coronavirus) pandemic has had a mixed effect on industry performance, with life cover stagnating at the start of 2020-21. Nonetheless, over the year, premium income increased, stemming from higher claims from cyber... Learn More

4. Airports in the UK

2022 Overall Risk Score: 3.58

Demand for the Airports industry is primarily influenced by trends in domestic and international air travel, as operators provide support activities to both passenger and freight transport operators. Airports have increasingly diversified their sources of revenue, expanding into other commercial markets such as retail concessions, other property and car parking facilities. Industry revenue is expected to be very highly volatile over the five years through 2022-23, as growing demand for airlines over the first half of the period boosted demand for support services provided by airports. However, disruption from the COVID-19 (coronavirus) pandemic offset this growth, causing revenue to contract... Learn More

5. Biscuit Production in the UK

2022 Overall Risk Score: 3.60

The Biscuit Production industry produces a range of grain-based snack products. Its main products are backers' wares, which are estimated to generate 25% of revenue in 2021-22. Operators also produce savoury biscuits and snacks, preserved cakes and pastries, and snack foods made from grain. Demand for biscuits is predominantly driven by the level of demand from supermarkets, grocery wholesalers and bakery retailers, which is underpinned by consumer demand. The industry is fairly fragmented, with only three companies holding market shares of more than 5%. Industry revenue is expected to rise at a compound annual rate of 1% over the five... Learn More

6. Precision Agriculture Systems & Services in the UK

2022 Overall Risk Score: 3.62

Companies in the Precision Agriculture Systems and Services industry serve the downstream agricultural sector. The industry's products and services aim to increase the efficiency and yields of arable land and livestock. This is achieved through soil mapping, variable-rate application technology, Global Navigation Satellite System services, guidance systems and livestock management.

The industry has performed well in recent years. Over the five years through 2022-23, industry revenue is expected to expand at a compound annual rate of 1.3% to reach £114.6 million. Growth has been primarily driven by agricultural income, business capital expenditure and the deprecation of the pound. Nonetheless, fluctuating fertiliser... Learn More

7. Agricultural Insurance in the UK

2022 Overall Risk Score: 3.65

Over the past five years, operators in the Agricultural Insurance industry have struggled with poor investment returns, volatility in underwriting returns and dampened demand induced by the COVID-19 (coronavirus) outbreak. Additionally, significant damage was caused by natural disasters, particularly flooding, which raised the value of claim pay-outs. Operators have also contended with increasingly stringent regulatory requirements, such as the Solvency II directive. Due to these operating difficulties, smaller companies in the industry have chosen to phase out or end agricultural insurance to focus on higher-margin insurance markets. Industry revenue is expected to decrease at a compound annual rate of 0.1%... Learn More

8. Risk & Damage Evaluation in the UK

2022 Overall Risk Score: 3.72

The industry acts as an outsourced claim adjusting and processing service for insurers. The industry also provides services to policyholders in the form of independent third-party validation, or the contesting of evaluations made by assessors employed by the insurers underwriting the policy. Demand for the industry's services is closely aligned with the level of outsourcing insurers opt to undertake, insurance coverage and the occurrence of insured risks that give rise to the need for assessing damage caused and the level of pay-outs. Over the five years through 2021-22, industry revenue is expected to increase at a compound annual rate of... Learn More

9. Online Food Ordering & Delivery Platforms in the UK

2022 Overall Risk Score: 3.76

Players in the Online Food Ordering and Delivery Platforms industry can be split into two categories: aggregators and new delivery platforms. Aggregators offer access to a range of food outlets through a single online portal and generate revenue through a restaurant sign-up fee and commission on an order. Traditionally, aggregators do not operate a delivery fleet, with the food outlet instead handling delivery. New delivery platforms such as Deliveroo and Uber Eats offer delivery logistics. For new delivery operators, revenue is usually composed of restaurant sign-up fees, commission on orders, and delivery and service fees paid by the consumer.

Over the... Learn More

10. Online Travel Agencies in the UK

2022 Overall Risk Score: 3.79

Over the five years through 2021-22, industry revenue is anticipated to decrease at a compound annual rate of 3.6%, although this decline is largely due to the effects of the COVID-19 (coronavirus) outbreak over 2020-21. Prior to January 2020, industry revenue was on an upwards trajectory, driven by strong demand for travel and changing consumer trends as households became more familiar and comfortable with online purchases. Expanding product and service offerings and greater marketing and communication initiatives also prompted growth. However, online travel agencies (OTAs) have contended with numerous disturbances over the period, including from political unrest and conditions in... Learn More