2024
0
Ireland Car Insurance Market Report 2024
2024-07-04T09:01:26+01:00
REP1978996E_3DA2_40CD_A30E_8DB26864A9E2
1495
174336
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Report
en_GB
Despite intense pressures on consumers’ finances – particularly in NI where, in addition to elevated inflation, car insurance premiums increased by almost 40% in 2023 – fully comprehensive cover remains…

Ireland Car Insurance Market Report 2024

£ 1,495 (Excl.Tax)

Report Summary

Despite intense pressures on consumers’ finances – particularly in NI where, in addition to elevated inflation, car insurance premiums increased by almost 40% in 2023 – fully comprehensive cover remains the cover of choice for Irish motorists, illustrating the resilience of the product. Even when consumers were cutting back elsewhere, there was no decline in the proportion of policyholders with comprehensive cover. The data very clearly indicate that motorists value and prioritize high-level cover when it comes to car insurance. This may, however, be further tested in 2024 if, as expected, premiums rise even further. Additional consumer data casts doubt over consumers’ capacity to absorb significantly higher expenses. Ultimately, however, the market will be resilient in the long term as car insurance remains an obligatory purchase for motorists. Opportunities to evolve with technological and environmental developments will help insurers appeal to the new generation of motorists.

This report looks at the following areas:

  • Impact of inflation on private motor insurance claims and premiums, as well as customer behaviour and buying habits
  • Recent claims activity
  • Market size and forecast for the car insurance market
  • Ownership of car insurance
  • Analysis of renewal behaviours and intentions
  • Main providers of car insurance in NI and RoI
  • Analysis of behaviours and attitudes in the car insurance market

While most are happy with their current policy, most agree it's important to shop around. If premiums go up in 2024, so too will the number shopping around.

Brian O'Connor, Category Director – Irish Reports

Market Definitions

For the purposes of this Report, Mintel has used the following definitions:

This Report examines the Irish market for car insurance. Commercial vehicle insurance is excluded.

Most car insurance policies relate to private car insurance, which is the focus of the consumer research (ie cover for cars that are used by individuals for private purposes). As such, the terms ‘motor insurance’ and ‘car insurance’ are used interchangeably throughout the Report.

Market size data is sourced from the ABI and Central Bank (Ireland), using the following definitions:

  • motor insurance covers damage to or loss of motor vehicles operating on land, as well as all liabilities arising from their use.
  • domestic motor insurance refers to vehicles where the main purpose is to transport nine or fewer non-fare paying persons (where each vehicle is individually rated; or the person insured is not a corporate or partnership and the number of vehicles insured is three or less) or 10 or more non-fare paying persons (where the persons insured are not a corporate or partnership and each vehicle is individually rated).

Table of Contents

  1. Executive Summary

    • Market dynamics and outlook
    • Market size & forecast
    • Value continuing to grow
    • Market predictions
    • Market set to grow steadily year-on-year for next five years
    • Graph 1: Index of gross written premiums, car insurance, estimated, forecast and projected, NI and RoI, 2019-2028
    • Market drivers
    • Cost of owning a car now higher due to inflation
    • Most consumers are coping financially, but couldn’t afford major increases in premiums
    • Cost of car insurance in NI up 38% in the 12 months to Q1 2024
    • Premiums in RoI declined by almost 7% in 2022
    • Increase in number and cost of claims made in RoI and NI
    • Road safety improving across Ireland over the past decade
    • What consumers want and why
    • Three-quarters of Irish consumers own a car
    • Graph 2: consumer car ownership, 2024
    • Three in five motorists bought a second-hand car
    • Graph 3: agreement with statements about car ownership, 2024
    • Most non-car-owning consumers do not have a driving license
    • Graph 4: agreement with statements among consumers who do not own a car, 2024
    • Most motorists have fully comprehensive cover
    • Majority shop around, but most end up sticking with existing insurer
    • More than 50% of policies in NI provided by five biggest providers
    • Graph 5: current provider of car insurance policy, NI, 2024
    • The five leading providers provide 70% of policies in RoI
    • Graph 6: current provider of car insurance policy, RoI, 2024
    • Most policyholders are happy with their current policy, but still keeping eye on things
    • Insurance costs consideration for new car purchase
    • Companies and innovations
    • Innovation and marketing
    • Using new channels to interface with insurance customers
  2. Market Dynamics

    • Market size
    • Total value of the Irish market to reach almost €2 billion in 2024
    • Graph 7: gross written premiums, private car insurance, actual, estimated and projected, 2019-24
    • RoI written policy count exceeded 2.2 million in 2022
    • Graph 8: written policy count, private motor insurance, RoI, 2009-22
    • Market forecast
    • Total market projected to exceed €2.3 billion by 2023
    • Graph 9: gross written premiums, private car insurance, estimated, forecasted and projected, IoI, NI and RoI, 2024-28
    • Steady-but-moderate growth likely for the coming years, both in NI and RoI
    • Market drivers
    • High inflation has pushed up the cost of car ownership
    • 56% have experienced increased petrol or diesel prices
    • Graph 10: issues consumers have been affected by over the last two months, NI and RoI, 2024
    • The majority of consumers are coping, but there is little scope for premium increases
    • Graph 11: how consumers describe their own current financial situation, NI and RoI, 2024
    • NI car insurance premiums up 38% in the 12 months to Q1 2024
    • Premiums in NI high compared to much of the UK
    • Graph 12: average car insurance premium, by region, Q1 2024
    • Cost of car cover in the UK (incl NI) now far above pre-COVID-19 levels
    • Men still paying more than women for cover in the UK (incl NI)
    • Teen motorists in UK (incl NI) paying around £3,000 for car insurance
    • Premiums in RoI down almost 7% in 2022
    • Graph 13: average motor insurance premium, RoI, 2009-22
    • Decline in prices follows a prolonged period of rising premiums
    • Graph 14: [no title]
    • Motorists in their 60s paying the lowest prices in RoI
    • Graph 15: average car insurance premium, by age, RoI, 2024
    • New drivers paying the highest premiums in RoI
    • Graph 16: car insurance cost for drivers, by years of driving experience, RoI, 2024
    • 24% increase in number of claims made in RoI in 2022
    • Graph 17: claim numbers for accident years, RoI, 2009-22
    • 25% increase in cost of claims made in RoI in 2022
    • Graph 18: claim costs for accident years, RoI, 2009-22
    • Almost £10 billion paid out by motor insurers in UK (incl NI) in 2023
    • Graph 19: motor insurance claims payouts, by type of claim, £ billions, 2023
    • Decline in number of road accidents in NI over past decade
    • Graph 20: police recorded injury road traffic collisions, NI, 2014-23
    • Recent increase in road accident fatalities in RoI
    • Graph 21: number of fatalities from road traffic accidents, RoI, 1998-2023
  3. What Consumers Want and Why

    • Car ownership
    • Three out of every four consumers own a car
    • Graph 22: car ownership, NI and RoI, 2024
    • Car ownership peaks among 45-64s
    • Graph 23: car ownership, by age, NI and RoI, 2024
    • Car ownership higher among ABC1s and higher earners
    • Graph 24: car ownership, by social status and annual household income, NI and RoI, 2024
    • Most motorists in Ireland driving second-hand cars
    • Graph 25: type of car owned and when bought, NI and RoI, 2024
    • Men more likely than women to purchase new cars
    • Graph 26: statements about car ownership, by gender, RoI, 2024
    • Similar trend in NI
    • Graph 27: statements about car ownership, by gender, NI, 2024
    • Almost half of non-car-owning consumers do have a driving license
    • Graph 28: reasons for not owning a car, NI and RoI, 2024
    • Type of insurance owned
    • The majority of car owners have fully comprehensive cover
    • Graph 29: type of car insurance owned, NI and RoI, 2024
    • No dip in ownership of fully comprehensive cover, despite financial pressures
    • Graph 30: ownership pf fully comprehensive car insurance, NI and RoI, 2021-24
    • Younger  drivers less inclined to have fully comprehensive cover
    • Graph 31: ownership of fully comprehensive car insurance, by age, NI and RoI, 2024
    • Behaviour at last renewal
    • Most policyholders shopped around – but the majority ultimately stayed with existing insurer
    • Graph 32: how policyholders behaved when last renewed or arranged car insurance, NI and RoI, 2024
    • Younger motorists least inclined to shop around at renewal
    • Graph 33: policyholders who shopped around when they last renewed or arranged their car insurance, by gender and age, NI and RoI, 2024
    • …but also less inclined to stay with their existing insurer
    • Graph 34: policyholders who stayed with their existing insurer when they last renewed or arranged their car insurance, by gender and age, NI and RoI, 2024
    • Main providers of car insurance
    • The five biggest providers provide over 50% of policies in NI
    • Graph 35: what providers do policyholders have their car insurance with, NI, 2024
    • Five biggest providers provide 70% of policies in RoI
    • Graph 36: what providers do policyholders have their car insurance with, RoI, 2024
    • Attitudes towards car insurance
    • General satisfaction, but agreement that there is a need to shop around
    • Most consumers happy with their chosen policy
    • Happiness with policy perhaps due to buyers' doing their homework
    • Graph 37: agreement that you have to shop around at renewal to get the best deal, by gender, age and social status, NI and RoI, 2024
    • Increased premiums experienced by three-quarters in NI, more than half in RoI
    • Graph 38: agreement that 'I have noticed my premiums increase a lot in the last 12 months', by gender, age and social status, NI and RoI, 2024
    • Cost of cover is at the front of consumers’ minds
    • Graph 39: agreement that 'The cost of insurance would influence the next car I buy', by age, NI and RoI, 2024
    • Younger motorists most likely to struggle to afford cover
    • Men and 17-34s most likely to have made a claim
    • Graph 40: agreement that 'I've made a claim on my car insurance in the last three years', by age, NI and RoI, 2024
  4. Competitive landscape

    • Companies and brands
    • Abbey Autoline
    • Abbey Autoline – recent developments
    • Admiral– key facts
    • Admiral  – recent developments
    • Allianz – key facts
    • Allianz – recent developments
    • Allied Irish Bank (AIB) – key facts
    • Allied Irish Bank – recent developments
    • Aviva – key facts
    • Aviva – recent developments
    • AXA – key facts
    • AXA – recent developments
    • Bank of Ireland – key facts
    • Bank of Ireland – recent developments
    • Direct Line Group – key facts
    • Direct Line Group – recent developments
    • FBD – key facts
    • FBD – recent developments
    • Liberty Insurance  – key facts
    • Liberty Insurance  – recent developments
    • An Post – key facts
    • An Post  – recent developments
    • 123.ie (RSA) – key facts
    • 123.ie – recent developments
    • Innovations
    • Pay-per-mile insurance appeals to seldom users
    • Seasonal car cover
    • Engaging customers in new channels
  5. Appendix

    • Supplementary data
    • Market size and forecast: underlying data
    • Report scope and definitions
    • Market definition
    • Abbreviations
    • Methodology
    • Consumer research methodology

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