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Car Insurance - Ireland - May 2016

“Having benefited from several years of intense price competition among car insurance providers, consumers both in NI and RoI are being confronted now with a harsh new reality: significant increases in motor insurance premiums over the past couple of years, with further (albeit less severe) increases almost inevitable in the months and years ahead.”
– Brian O’Connor, Senior Consumer Analyst

This report discusses the following key topics:

  • Increased premiums could result in increased switching
  • Potential demand among consumers for build-your-own policies
  • Increased premiums could result in compromised quality of cover

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Table of contents

  1. Overview

    • What you need to know
      • Issues covered in this Report
      • Executive Summary

          • The market
            • Figure 1: Total value of gross written premiums, private motor insurance, €m, NI and RoI, 2011-16
          • Forecast
            • Figure 2: Index of gross written premiums, private motor insurance, NI and RoI, 2010-20
          • Market factors
            • Car insurance premiums skyrocketed by 50% in two years in RoI
              • NI car insurance premiums increased by over 20% in 2015
                • Doubts as to whether consumers can afford higher premiums
                  • More cars on Irish roads means a bigger car insurance market
                    • Companies, brands and innovations
                      • The consumer
                        • Irish car insurance sector dominated by fully comprehensive cover
                          • Figure 3: Types of car insurance currently owned by consumers, NI and RoI, April 2016
                        • AXA the market leader both in NI and RoI
                          • Figure 4: Provider of car insurance for main car, NI, January 2016
                          • Figure 5: Provider of car insurance for main car, RoI, January 2016
                        • Around half of all policies arranged online, a third over the phone
                          • Figure 6: Method used by consumers the last time they renewed their car insurance policy, NI and RoI, January 2016
                        • Most Irish motorists shop around when it is time to renew
                          • Figure 7: Switching behaviour of consumers during their last car insurance renewal period, January 2016
                        • Small number of commonly-owned add-ons favoured by Irish policyholders
                          • Figure 8: Consumers who already have or would be interested in selected features as a car insurance policy ‘add-on’, NI and RoI, January 2016
                        • What it means
                        • Issues and Insights

                          • Increased premiums could result in increased switching
                            • The facts
                              • The implications
                                • Potential demand among consumers for build-your-own policies
                                  • The facts
                                    • The implications
                                      • Increased premiums could result in compromised quality of cover
                                        • The facts
                                          • The implications
                                          • The Market – What You Need to Know

                                            • Car insurance premiums skyrocketed by 50% in two years in RoI
                                              • NI car insurance premiums increased by over 20% in 2015
                                                • Doubts as to whether consumers can afford higher premiums
                                                  • More cars on Irish roads means a bigger car insurance market
                                                  • Market Size and Forecast

                                                      • Gross written premiums in 2016 set to exceed €1.5 billion
                                                        • Figure 9: Gross written premiums, private motor insurance, IoI, NI and RoI, 2010-20
                                                      • Both markets in middle of steady year-on-year growth period
                                                        • Figure 10: Index of gross written premiums, private motor insurance, NI and RoI, 2010-20
                                                    • Market Drivers

                                                      • RoI car insurance premiums up more than 50% in two years
                                                        • Figure 11: Consumer Price Index, motor insurance, Index, RoI, March 2014-March 2016
                                                        • Figure 12: Consumer Price Index, motor insurance, annual % increase, RoI, March 2014-March 2016
                                                      • Premium increases due in part to unsustainable underwriting losses
                                                        • Court awards, legal costs and fraud also contributing to upward pressure on prices
                                                          • Injuries Board not functioning as intended in RoI
                                                            • UK (incl. NI) motor insurance premiums up by more than 20% in 2015
                                                              • Bogus motor claims one factor in rising premiums – but reform imminent
                                                                • Young drivers in the UK (including NI) paying twice the average for motor insurance
                                                                  • Figure 13: Average car insurance premiums, by age, UK (including NI), £, Q4 2015
                                                                • NI car insurance premiums among the highest in the UK
                                                                  • Figure 14: Average car insurance premiums, by region, UK (including NI), £, Q4 2015
                                                                  • Figure 15: Average car insurance premiums, % quarterly increase, by region, UK (including NI), Q4 2015
                                                                • Limited capacity among consumers to absorb higher premiums
                                                                  • Figure 16: How consumers rate their current financial situation, NI and RoI, April 2016
                                                                • Almost 1.1 million vehicles on NI roads in 2014
                                                                  • Figure 17: Licensed vehicle stock, 000s, NI, 2004-14
                                                                  • Figure 18: Reported injury road traffic collisions in NI, 2006-15
                                                                • More than three quarters of NI households have access to vehicle
                                                                  • Figure 19: Households with access to at least one car/van, %, NI and England, 2011-15
                                                                • Almost 2 million private cars on RoI roads in 2014
                                                                  • Figure 20: Number of private cars, million, RoI, 2004-14
                                                                  • Figure 21: New and second-hand private cars licensed for the first time, RoI, 2003-15
                                                              • Companies and Brands – What You Need to Know

                                                                • Insurance companies tap into black box revelation
                                                                  • Insurance companies unite to regulate autonomous cars
                                                                    • XS direct re-enters Irish motor insurance market
                                                                      • Hughes insurance invests £1 billion in e-commerce platform
                                                                        • Allianz no longer insures cars aged 15 year and over
                                                                          • One Direct is rebranded to Postal Insurance
                                                                          • Companies and Brands

                                                                            • Admiral Group
                                                                              • Key facts
                                                                                • Motor insurance products
                                                                                  • Recent developments
                                                                                    • Allianz Group Plc
                                                                                      • Key facts
                                                                                        • Motor insurance products
                                                                                          • Recent developments
                                                                                            • AXA
                                                                                              • Key facts
                                                                                                • Motor insurance products
                                                                                                  • Recent developments
                                                                                                    • An Post (Post Insurance)
                                                                                                      • Key facts
                                                                                                        • Motor insurance products
                                                                                                          • Recent developments
                                                                                                            • Direct Line Group
                                                                                                              • Key facts
                                                                                                                • Motor insurance products
                                                                                                                  • Recent developments
                                                                                                                    • FBD
                                                                                                                      • Key facts
                                                                                                                        • Motor insurance products
                                                                                                                          • Recent developments
                                                                                                                            • Liberty Insurance (including Hughes Insurance)
                                                                                                                              • Key facts
                                                                                                                                • Motor insurance products
                                                                                                                                  • Recent developments
                                                                                                                                    • RSA Insurance Ireland
                                                                                                                                      • Key facts
                                                                                                                                        • Motor insurance products
                                                                                                                                          • Recent developments
                                                                                                                                            • Open + Direct Insurance
                                                                                                                                              • Key facts
                                                                                                                                                • Motor insurance products
                                                                                                                                                  • Recent developments
                                                                                                                                                    • Zurich
                                                                                                                                                      • Key facts
                                                                                                                                                        • Motor insurance products
                                                                                                                                                          • Recent developments
                                                                                                                                                            • Tesco Bank
                                                                                                                                                              • Key facts
                                                                                                                                                                • Motor insurance products
                                                                                                                                                                  • Recent developments
                                                                                                                                                                    • M&S Bank
                                                                                                                                                                      • Key facts
                                                                                                                                                                        • Motor insurance products
                                                                                                                                                                          • Recent developments
                                                                                                                                                                            • Allied Irish Bank
                                                                                                                                                                              • Key facts
                                                                                                                                                                                • Motor insurance products
                                                                                                                                                                                  • Bank of Ireland
                                                                                                                                                                                    • Key facts
                                                                                                                                                                                      • Motor insurance products
                                                                                                                                                                                        • Recent developments
                                                                                                                                                                                          • Ulsterbank
                                                                                                                                                                                            • Key facts
                                                                                                                                                                                              • Motor insurance products
                                                                                                                                                                                                • Recent developments
                                                                                                                                                                                                • The Consumer – What You Need to Know

                                                                                                                                                                                                  • Irish car insurance sector dominated by fully comprehensive cover
                                                                                                                                                                                                    • AXA the market leader both in NI and RoI
                                                                                                                                                                                                      • Around half of all policies arranged online, a third over the phone
                                                                                                                                                                                                        • Most Irish motorists shop around when it is time to renew
                                                                                                                                                                                                          • Small number of commonly-owned add-ons favoured by Irish policyholders
                                                                                                                                                                                                          • The Consumer – Type of Car Insurance Owned

                                                                                                                                                                                                              • Fully comprehensive cover dominates market in NI and RoI
                                                                                                                                                                                                                  • Figure 22: Types of car insurance currently owned by consumers, NI and RoI, January 2016
                                                                                                                                                                                                                • Ownership of fully comprehensive cover highest among 25+
                                                                                                                                                                                                                  • Figure 23: Consumers who have fully comprehensive car insurance, by age, NI and RoI, January 2016
                                                                                                                                                                                                                • Third party policies most popular among C2DEFs and 18-44s
                                                                                                                                                                                                                  • Figure 24: Ownership of third party and third party fire and theft insurance, RoI, January 2016
                                                                                                                                                                                                                • Little interest among consumers in black box technology (telematics)
                                                                                                                                                                                                                • The Consumer – Car Insurance Providers

                                                                                                                                                                                                                    • AXA dominant provider in NI car insurance market
                                                                                                                                                                                                                      • Figure 25: Provider of car insurance for main car, NI, January 2016
                                                                                                                                                                                                                    • AXA particularly popular among women, 25-34s and C2DEFs
                                                                                                                                                                                                                      • Figure 26: Consumers who obtained insurance for main car from AXA, by gender, age and social class, NI, January 2016
                                                                                                                                                                                                                    • AXA leading RoI market – but with stronger competition than in NI
                                                                                                                                                                                                                      • Figure 27: Provider of car insurance for main car, RoI, January 2016
                                                                                                                                                                                                                    • AXA particularly popular among 25-34s and C2DEFs
                                                                                                                                                                                                                      • Figure 28: Consumers who obtained insurance for main car from AXA, by gender, age and social class, RoI, January 2016
                                                                                                                                                                                                                    • Aviva strongly positioned among motorists aged 55+
                                                                                                                                                                                                                      • Figure 29: Consumers who obtained insurance for main car from Aviva, by gender, age and social class, RoI, January 2016
                                                                                                                                                                                                                    • Allianz appealing strongest to motorists aged 35-44
                                                                                                                                                                                                                      • Figure 30: Consumers who obtained insurance for main car from Allianz, by gender, age and social class, RoI, January 2016
                                                                                                                                                                                                                    • RSA more popular among motorists aged 55+
                                                                                                                                                                                                                      • Figure 31: Consumers who obtained insurance for main car from RSA, by gender, age and social class, RoI, January 2016
                                                                                                                                                                                                                  • The Consumer – Methods of Renewal

                                                                                                                                                                                                                      • Approaching half of all policies now arranged online
                                                                                                                                                                                                                        • Figure 32: Method used by consumers the last time they renewed their car insurance policy, NI and RoI, January 2016
                                                                                                                                                                                                                      • Older consumers more inclined to renew cover over the phone
                                                                                                                                                                                                                        • Figure 33: Consumers who renewed their last car insurance policy over the phone, NI and RoI, January 2016
                                                                                                                                                                                                                      • Motorists aged 35-44 renewing via insurer’s own website
                                                                                                                                                                                                                          • Figure 34: Consumers who renewed their last car insurance policy online directly through the insurance provider, NI and RoI, January 2016
                                                                                                                                                                                                                        • Younger drivers and ABC1s in NI using price comparison websites
                                                                                                                                                                                                                          • Figure 35: Consumers who renewed their last car insurance policy online – through a price comparison website, NI and RoI, January 2016
                                                                                                                                                                                                                        • Majority of motorists shop around at renewal time
                                                                                                                                                                                                                          • Figure 36: Switching behaviour of consumers during their last car insurance renewal period, January 2016
                                                                                                                                                                                                                        • Around a fifth renew with existing insurer without shopping around
                                                                                                                                                                                                                          • Figure 37: Consumers who ‘stayed and didn’t shop around’ during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
                                                                                                                                                                                                                        • Around half of all motorists shopped around – but then stayed
                                                                                                                                                                                                                          • Figure 38: Consumers who ‘stayed but only after shopping around’ during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
                                                                                                                                                                                                                        • More than 1 in 4 switched insurer at last renewal period
                                                                                                                                                                                                                          • Figure 39: Consumers who switched to a different insurer during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
                                                                                                                                                                                                                      • The Consumer – Add-ons to Car Insurance Policies

                                                                                                                                                                                                                          • High-level ownership of most commonly-held add-ons
                                                                                                                                                                                                                            • Figure 40: Consumers who already have or would be interested in selected features as a car insurance policy ‘add-on’, NI and RoI, January 2016
                                                                                                                                                                                                                          • Relatively strong potential market for certain add-ons
                                                                                                                                                                                                                            • Figure 41: Selected features as car insurance policy ‘add-ons’ that consumers do not have but are interested in and would be willing to pay more for, NI and RoI, January 2016
                                                                                                                                                                                                                          • Some add-ons unlikely to move beyond niche appeal
                                                                                                                                                                                                                            • Figure 42: Selected features as car insurance policy ‘add-ons’ that consumers do not have and are not interested in, NI and RoI, January 2016
                                                                                                                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                          • Data sources
                                                                                                                                                                                                                            • Market size rationale
                                                                                                                                                                                                                              • Definitions
                                                                                                                                                                                                                                • Abbreviations
                                                                                                                                                                                                                                • Appendix – The Consumer

                                                                                                                                                                                                                                  • NI Toluna data
                                                                                                                                                                                                                                    • Figure 43: Types of car insurance currently used by consumers, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 44: Provider of car insurance for main car, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 45: Provider of car insurance for main car, by demographics, NI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 46: Provider of car insurance for main car, by demographics, NI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 47: Method used by consumers the last time they renewed their car insurance policy, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 48: Method used by consumers the last time they renewed their car insurance policy, by demographics, NI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 49: Switching behaviour of consumers during their last car insurance renewal period, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 50: Consumers who already have or would be interested in windscreen cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 51: Consumers who already have or would be interested in protected no-claims bonus as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 52: Consumers who already have or would be interested in legal protection as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 53: Consumers who already have or would be interested in courtesy car as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 54: Consumers who already have or would be interested in breakdown cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 55: Consumers who already have or would be interested in increased personal accident cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 56: Consumers who already have or would be interested in European/overseas cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 57: Consumers who already have or would be interested in key insurance as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 58: Consumers who already have or would be interested in insurance for car contents (eg multimedia devices)as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 59: Consumers who already have or would be interested in gadget insurance (eg phone) as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                    • Figure 60: Consumers who already have or would be interested in camera/recording equipment for car as a car insurance policy ‘add-on’, by demographics, NI, January 2016
                                                                                                                                                                                                                                  • RoI Toluna data
                                                                                                                                                                                                                                    • Figure 61: Types of car insurance currently used by consumers, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 62: Provider of car insurance for main car, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 63: Provider of car insurance for main car, by demographics, RoI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 64: Provider of car insurance for main car, by demographics, RoI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 65: Method used by consumers the last time they renewed their car insurance policy, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 66: Method used by consumers the last time they renewed their car insurance policy, by demographics, RoI, January 2016 (continued)
                                                                                                                                                                                                                                    • Figure 67: Switching behaviour of consumers during their last car insurance renewal period, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 68: Consumers who already have or would be interested in windscreen cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 69: Consumers who already have or would be interested in protected no-claims bonus as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 70: Consumers who already have or would be interested in legal protection as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 71: Consumers who already have or would be interested in courtesy car as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 72: Consumers who already have or would be interested in breakdown cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 73: Consumers who already have or would be interested in increased personal accident cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 74: Consumers who already have or would be interested in European/overseas cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 75: Consumers who already have or would be interested in key insurance as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 76: Consumers who already have or would be interested in insurance for car contents (eg multimedia devices) as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 77: Consumers who already have or would be interested in gadget insurance (eg phone) as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
                                                                                                                                                                                                                                    • Figure 78: Consumers who already have or would be interested in camera/recording equipment for car as a car insurance policy ‘add-on’, by demographics, RoI, January 2016

                                                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                                Car Insurance - Ireland - May 2016

                                                                                                                                                                                                                                US $1,466.97 (Excl.Tax)