Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumers and General Insurance - UK - December 2012

“Consumers face a dilemma when arranging insurance, between the unrivalled convenience of price comparison sites and the reliability and accuracy of going directly to an insurer. Face-to-face broker services may be increasingly rare, but are still associated with professionalism and expertise –valuable qualities in a market where consumer trust is low.”

– Deborah Osguthorpe, Head of UK Financial Services Research

Some questions answered in this report include:
  • To what extent are consumers trying to reduce the amount they spend on insurance cover?
  • Is brand an important consideration when arranging insurance cover?
  • How can insurers compete with price comparison sites?
  • Do face-to-face channels still have a role to play in insurance distribution?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Market definitions
        • Note on consumer research
          • Abbreviations
          • Executive Summary

              • The market
                • One in four owns five or more different types of insurance cover
                  • Figure 1: General insurance product ownership, August 2012
                • General insurance premiums increased by 5% in 2011
                  • Figure 2: NWP, total outgoings, net claims and underwriting result for UK annual general business, 2007-11
                • Market factors
                  • A challenging economic backdrop and a plethora of regulatory changes
                    • Companies, brands and innovation
                      • Aviva takes over as leading UK general insurance underwriter
                        • Figure 3: Largest general insurers/reinsurers – total market (direct and facultative business), by GWP, 2011
                      • Adspend continued to fall in 2011/12
                        • The consumer
                          • Online channels dominate but offline channels still have a role to play
                            • Figure 4: Channels used to arrange insurance, August 2012
                          • Price comparison sites are seen as convenient but lack accuracy
                            • Telephone services are the preferred option when making a claim or policy amendments
                              • Figure 5: Channel preferences for different insurance-related activities, August 2012
                            • The majority shop around at their insurance renewal
                              • Figure 6: Approaches to renewing insurance cover, August 2012
                            • Cost, cover and UK call-centres are all seen as important considerations
                              • Figure 7: Purchasing considerations by importance, August 2012
                            • 50% of all insurance policyholders are looking to reduce their insurance expenditure
                              • Figure 8: Attitudes towards spending on general insurance products, August 2012
                            • What we think
                            • Issues in the Market

                                • To what extent are consumers trying to reduce the amount they spend on insurance cover?
                                  • Is brand an important consideration when arranging insurance cover?
                                    • How can insurers compete with price comparison sites?
                                      • Do face-to-face channels still have a role to play in insurance distribution?
                                      • Trend Application

                                        • Time saving devices for multi-product owners
                                          • Promoting Brand Britannia
                                            • Providing a seamless, multi-channel service
                                            • Market Environment

                                              • Key points
                                                • Challenging economy creates a more price sensitive consumer
                                                  • Figure 9: UK GDP growth – percentage change, latest quarter on previous quarter, 2009-12
                                                • Motor insurance premiums fall, but home insurance premiums are rising
                                                  • Figure 10: AA British Insurance Premium Index market average trends, April 2009-October 2012
                                                • Weather-related claims remain a concern for property insurers
                                                  • Regulatory and legislative issues
                                                    • Market gearing up for implementation of EU gender ruling
                                                      • Ban on referral fees on the horizon
                                                        • Competition under the microscope
                                                          • Solvency II delayed again
                                                            • FSA clamps down on sale of bundled insurance products
                                                              • FSA to monitor sale of low cost insurance policies
                                                              • General Insurance Market Size

                                                                • Key points
                                                                  • General insurance premiums rise again
                                                                    • Figure 11: Summary of annual general insurance business – UK risks, by sector NWPs, 2007-11
                                                                  • Motor insurance premiums up by 10% in 2011
                                                                    • Property premiums rise following adverse weather conditions
                                                                      • General insurance market returned to underwriting profit in 2011
                                                                        • Figure 12: UK outgo and underwriting result for annual general insurance business, 2007-11
                                                                      • Improvements in both motor and property underwriting ratio
                                                                        • Figure 13: Underwriting ratio – UK annual general insurance business by sector, 2007-11
                                                                        • Figure 14: Claims ratio – UK annual general insurance business, by sector, 2007-11
                                                                    • Market Segmentation

                                                                      • Key points
                                                                        • Private motor accounted for 29% of total premium income in 2011
                                                                          • Figure 15: Share of premium income (UK annual business), by sector, 2011
                                                                        • Pet insurance premiums rise, but travel premiums fall
                                                                          • Figure 16: Premium analysis of UK general insurance business, 2006-07-2010-11
                                                                      • Underwriter Share

                                                                        • Key points
                                                                          • Aviva takes over as the leading UK general insurance underwriter
                                                                            • Figure 17: Largest general insurers/reinsurers – total market (direct and facultative business), by GWP, 2009-11
                                                                        • Companies and Products

                                                                          • Aviva
                                                                              • Figure 18: Key financial data for Aviva UK General Insurance business, H1 2011-H1 2012
                                                                              • Figure 19: Key financial data for Aviva UK General Insurance business, 2010-11
                                                                            • AXA Insurance
                                                                              • Chartis Insurance (AIG)
                                                                                  • Figure 20: Key financial data for Chartis (AIG) UK, 2010-11
                                                                                • Direct Line Group (formerly RBS Insurance)
                                                                                    • Figure 21: Key financial data for Direct Line Group, H1 2011-H1 2012
                                                                                    • Figure 22: Key financial data for RBS Insurance*, 2010-11
                                                                                  • RSA Insurance
                                                                                      • Figure 23: Key financial data for RSA UK Insurance, H1 2011-H1 2012
                                                                                      • Figure 24: Key financial data for RSA UK Insurance, 2010-11
                                                                                  • Brand Communication and Promotion

                                                                                    • Key points
                                                                                      • Adspend on general insurance products fell by 1.4% in 2011/12
                                                                                        • Figure 25: Topline adspend for general insurance products, 2009/10-2011/12
                                                                                      • Car insurance dominates the market
                                                                                        • Figure 26: Adspend, by general insurance category, 2009/10-2011/12
                                                                                      • TV advertising is the most popular channel for insurance adspend
                                                                                        • Figure 27: General insurance adspend, by media type, 2009/10-2011/12
                                                                                      • Majority of top 20 insurers increased adspend over last 12 months
                                                                                        • Figure 28: Top 20 general insurance advertisers, 2009/10-2011/12
                                                                                    • General Insurance Product Ownership

                                                                                      • Key points
                                                                                        • Most consumers have experience of general insurance market
                                                                                          • Figure 29: General insurance product ownership, August 2012
                                                                                        • Appetite for risk is lower among older consumers
                                                                                          • Figure 30: Responses to statements about risk and insurance, by age group, 2012
                                                                                        • Cover for technology could help to engage the young
                                                                                          • One in four have five or more types of general insurance cover
                                                                                            • Figure 31: General insurance product ownership, by number of products held, August 2012
                                                                                            • Figure 32: General insurance product ownership, by general insurance product ownership, August 2012
                                                                                          • Online tools to help multiple product holders
                                                                                          • Channels Used to Arrange General Insurance Products

                                                                                            • Key points
                                                                                              • Price comparison sites tighten grip on general insurance market…
                                                                                                • Figure 33: Channels used to arrange selected insurance products, August 2012
                                                                                              • …although offline channels still have a role to play
                                                                                                • Younger adults are more likely than average to use face-to-face channels
                                                                                                • Attitudes Towards Channels of Distribution

                                                                                                  • Key points
                                                                                                    • Price comparison sites are seen as the most convenient channel…
                                                                                                      • Figure 34: Channel associations, August 2012
                                                                                                    • …but insurer websites lead the way when it comes to accuracy
                                                                                                      • Brokers associated with reassurance and expertise
                                                                                                        • Figure 35: Correspondence analysis – attitudes towards channels of distribution, August 2012
                                                                                                      • Insurers have an edge in terms of reliability and trust
                                                                                                      • Channel Preferences for Managing General Insurance Policies

                                                                                                        • Key points
                                                                                                          • Consumers seek a multi-channel approach to managing insurance cover
                                                                                                            • Figure 36: Channel preferences for different insurance-related activities, August 2012
                                                                                                          • Higher income groups are the most inclined to use online channels
                                                                                                            • Making a claims remains a personal service
                                                                                                            • Approaches to Renewing General Insurance Products

                                                                                                              • Key points
                                                                                                                • Shopping around at renewal is now commonplace
                                                                                                                  • Figure 37: Approaches to renewing insurance cover, August 2012
                                                                                                                • Consumers see little reward in being loyal
                                                                                                                  • Insurance switchers are driven by price
                                                                                                                    • Figure 38: Reasons for switching car or home insurance, May 2012
                                                                                                                  • Is there any degree of loyalty left?
                                                                                                                    • Channel preference is linked to loyalty
                                                                                                                      • Figure 39: Approaches to renewing insurance cover, by channels used to arrange insurance, August 2012
                                                                                                                  • Insurance Provider Selection

                                                                                                                    • Key points
                                                                                                                      • Striking a balance between cost and cover
                                                                                                                        • Figure 40: Purchasing considerations by importance, August 2012
                                                                                                                      • UK-based call centres are a bigger consideration than brand
                                                                                                                        • Under 35s are more likely to look for provider recommendations
                                                                                                                          • Figure 41: Proportion of respondents that feel recommendations are an important insurance purchasing consideration, by age group, August 2012
                                                                                                                        • Loyal policyholders are more likely to select provider based on brand
                                                                                                                          • Figure 42: Importance of purchasing considerations, by approaches to renewing insurance cover, August 2012
                                                                                                                      • Attitudes Towards Spending on General Insurance Products

                                                                                                                        • Key points
                                                                                                                          • Almost 50% of policyholders are looking to reduce their insurance spend
                                                                                                                            • Figure 43: Attitudes towards spending on general insurance products, August 2012
                                                                                                                          • Shopping around for a cheaper deal
                                                                                                                            • Figure 44: Approaches to renewing insurance cover, attitudes towards spending on general insurance products, August 2012
                                                                                                                          • Quality seekers need to see added value
                                                                                                                            • Value chasers are more inclined to move providers mid-term
                                                                                                                              • Multiple product owners are more demanding
                                                                                                                                • Figure 45: Attitudes towards spending on general insurance products, by general insurance product ownership, August 2012
                                                                                                                              • Brand is more likely to be a consideration for those seeking reassurance
                                                                                                                                • Figure 46: Importance of purchasing considerations, by attitudes towards spending on general insurance products, August 2012
                                                                                                                            • Appendix – General Insurance Product Ownership

                                                                                                                                • Figure 47: Most popular general insurance product ownership, by demographics, August 2012
                                                                                                                                • Figure 48: Next most popular general insurance product ownership, by demographics, August 2012
                                                                                                                                • Figure 49: Other general insurance product ownership, by demographics, August 2012
                                                                                                                                • Figure 50: General insurance product ownership repertoire analysis (number of products held), by demographics, August 2012
                                                                                                                            • Appendix – Channels Used to Arrange General Insurance Products

                                                                                                                                • Figure 51: Channels used to arrange insurance, August 2012
                                                                                                                                • Figure 52: Channels used to arrange car insurance, by demographics, August 2012
                                                                                                                                • Figure 53: Channels used to arrange home contents insurance, by demographics, August 2012
                                                                                                                                • Figure 54: Channels used to arrange buildings insurance, by demographics, August 2012
                                                                                                                                • Figure 55: Channels used to arrange annual travel insurance, by demographics, August 2012
                                                                                                                                • Figure 56: Channels used to arrange medical/health insurance, by demographics, August 2012
                                                                                                                                • Figure 57: Channels used to arrange pet insurance, by demographics, August 2012
                                                                                                                            • Appendix – Attitudes Towards Channels of Distribution

                                                                                                                                • Figure 58: Top five price comparison websites for channel associations, by demographics, August 2012
                                                                                                                                • Figure 59: Top five insurer websites for channel associations, by demographics, August 2012
                                                                                                                                • Figure 60: Top five insurer telephone services for channel associations, by demographics, August 2012
                                                                                                                                • Figure 61: Top five broker face-to-face or telephone services for channel associations, by demographics, August 2012
                                                                                                                            • Appendix – Channel Preferences for Managing General Insurance Policies

                                                                                                                                • Figure 62: Channel preferences for researching a new policy, by demographics, August 2012
                                                                                                                                • Figure 63: Channel preferences for purchasing a new policy, by demographics, August 2012
                                                                                                                                • Figure 64: Channel preferences for query policy details, by demographics, August 2012
                                                                                                                                • Figure 65: Channel preferences for renewing an existing policy, by demographics, August 2012
                                                                                                                                • Figure 66: Channel preferences for amendments/change to an existing policy, by demographics, August 2012
                                                                                                                                • Figure 67: Channel preferences for cancelling a policy, by demographics, August 2012
                                                                                                                                • Figure 68: Channel preferences for making a claim, by demographics, August 2012
                                                                                                                            • Appendix – Approaches to Renewing General Insurance Products

                                                                                                                                • Figure 69: Approaches to renewing insurance cover, by demographics, August 2012
                                                                                                                            • Appendix – Insurance Provider Selection

                                                                                                                                • Figure 70: Importance of the cost of cover, by demographics, August 2012
                                                                                                                                • Figure 71: Importance of a well-known brand, by demographics, August 2012
                                                                                                                                • Figure 72: Importance of a quick and easy application process, by demographics, August 2012
                                                                                                                                • Figure 73: Importance of a recommendation from family/friends, by demographics, August 2012
                                                                                                                                • Figure 74: Importance of positive feedback/recommendation on online forums and social media, by demographics, August 2012
                                                                                                                                • Figure 75: Importance of the quality of cover provided, by demographics, August 2012
                                                                                                                                • Figure 76: Importance of rewards for loyalty, by demographics, August 2012
                                                                                                                                • Figure 77: Importance of UK-based call centres, by demographics, August 2012
                                                                                                                            • Appendix – Attitudes Towards Spending on General Insurance Products

                                                                                                                                • Figure 78: General insurance product ownership, attitudes towards spending on general insurance products, August 2012
                                                                                                                                • Figure 79: Attitudes towards spending on general insurance products, August 2012

                                                                                                                            Companies Covered

                                                                                                                            • AIG Group (American International Group Inc)
                                                                                                                            • Aviva Plc
                                                                                                                            • AXA PPP healthcare
                                                                                                                            • AXA UK plc
                                                                                                                            • Chartis UK
                                                                                                                            • Churchill Insurance
                                                                                                                            • Co-operative Group
                                                                                                                            • Direct Line Group Limited
                                                                                                                            • Facebook, Inc.
                                                                                                                            • Grupo Santander Central Hispano S.A.
                                                                                                                            • HSBC Private Bank (UK) Limited
                                                                                                                            • John Lewis Plc (department store)
                                                                                                                            • MORE TH>N
                                                                                                                            • Nationwide Building Society
                                                                                                                            • NatWest
                                                                                                                            • Privilege Insurance
                                                                                                                            • Royal Bank of Scotland Group plc
                                                                                                                            • RSA
                                                                                                                            • Sainsbury's Bank
                                                                                                                            • SimplyHealth Group Ltd
                                                                                                                            • Swiftcover
                                                                                                                            • Yorkshire Bank PLC

                                                                                                                            Consumers and General Insurance - UK - December 2012

                                                                                                                            £2,195.00 (Excl.Tax)