2026
9
UK Consumers and General Insurance: 2026
2026-04-23T16:00:48+00:00
REP676BDAD2_2AD4_47FE_ABDA_D22AD4C7FE65
2195
192836
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Report
en_GB
General insurance ownership has remained stable at 91%, but this apparent resilience masks growing strain. The rising cost of living has forced…
UK
Insurance
simple

UK Consumers and General Insurance: 2026

"Price-driven competition is no longer sustainable in general insurance. As margins tighten and regulation evolves, a fundamental shift in positioning and distribution is underway."

Katie Owens-Davies, Financial Services Analyst

Katie Owens-Davies, Financial Services Analyst

General insurance ownership has remained stable at 91%, but this apparent resilience masks growing strain. The rising cost of living has forced 40% of policyholders to reduce their insurance spend over the last year. As a result, many people are left underinsured, sacrificing the level of protection they need for the price they can afford.

When seeking savings, loyalty has proved thin. Consumers are more likely to turn to price comparison websites (PCW) than to their existing provider when faced with a price hike at renewal. This behaviour points to a lack of trust that the industry has yet to resolve. Despite ongoing efforts, a disconnect remains between providers’ intentions and consumers’ lived experiences. With margins tightening and claims inflation set to push premiums higher, switching is likely to accelerate unless this trust can be rebuilt.

Competing on price alone is becoming harder and less sustainable, particularly as search behaviour shifts towards AI‑driven discovery, and PCW influence begins to fade. The stronger long-term opportunity lies in repositioning insurance around protection, care and relationships. With 49% preferring to hold their policies with a single provider, it is clear consumers are willing to make this change.

This Report Looks at the Following Areas:

  • Size and performance of the UK general insurance market, including the key factors influencing demand and uptake
  • Product ownership levels and the impact of cost of living concerns on household insurance budgets
  • Key demographic segments driving ownership growth and the opportunities they create
  • Consumer contact preferences, covering preferred channels for policy management and claims handling
  • Factors influencing consumers’ choice of policy and provider, alongside the decision-making steps taken at renewal
  • Consumer switching behaviour and the key drivers of policyholder loyalty
Collapse All
  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for general insurance
    • Opportunities
    • Drive profitable growth through DIY bundling
    • Shift the conversation from price to protection
    • Extend distribution without fighting on price
  2. THE MARKET

    • Snapshot – General insurance market size and forecast
    • Inflation continues to dictate the market
    • Graph 1: CPI and average wage rises, 2021-25
    • Motor premiums drag on general insurance growth
    • Graph 2: GWP for domestic general insurance products, by segment, 2019-25
    • Inflation squeezes margins across personal lines
    • Lower incurred claims mask pressures ahead
    • Graph 3: value of gross claims incurred in domestic general insurance, by segment, 2019-24
    • Regulatory and legislative factors
    • Balancing industry growth with consumer outcomes
  3. THE CONSUMER

    • Product ownership
    • Insurance remains non-negotiable for consumers
    • Capture growth opportunities in fast-moving protection lines
    • Financial strain squeezes household insurance budgets
    • Lead the conversation with comprehensive cover
    • Graph 4: general insurance ownership repertoire analysis, 2023 and 2025
    • Consumer groups
    • Younger consumers open the door for bundled products
    • Expand your customer base with DIY solutions
    • Target growing families who buy more and switch less
    • Close the protection blind spot among adults living at home
    • Convert unprotected young adults with independence-led messaging
    • Contact preferences
    • Place empathy at the core of your communication strategy
    • Graph 5: preferred means of contacting insurance provider, 2025
    • Improve claims satisfaction with instant confirmations and proactive updates
    • Investment in AI support risks under-delivering
    • Policy renewals
    • Consumers stay loyal even as premiums rise
    • Reward loyalty to build reputation and reduce churn
    • Price dictates choice at renewal
    • Differentiate with experience where costs cannot be compromised
    • Optimise content for AI-generated search results
    • Switching behaviours
    • Strengthen consumer relationships to avoid PCW-led losses
    • Graph 6: actions taken in response to an insurance premium rise, 2025
    • Reduce renewal price-driven churn by offering interactive, problem-solving tools
    • Rebuilding trust is critical to retaining flighty consumers
    • Emphasise brand development and past learnings to retain older consumers
  4. INNOVATION AND MARKETING

    • Chase makes protection easy with budget bundle
    • Aviva targets pet insurance for next major growth lever
    • Admiral unlocks long-term growth by moving beyond price
    • Embedded insurance is reshaping personal lines distribution
    • Ageas secures top-three position with esure Group acquisition
    • Firms must leverage AI to drive efficiency without sacrificing trust
    • Allianz launches GenAI assistant, but it’s not for their customers
    • ChatGPT targets accountability with integrated insurance marketplaces
  5. APPENDIX

    • Report scope
    • The consumer
    • Consumer research questions
    • Consumer research methodology
    • Repertoire analysis methodology
    • UK generation groups
    • Abbreviations

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