UK Innovations in Insurance: 2025

UK Insurance Industry Innovation

• Only 42% of insured UK adults think insurance companies are innovative, highlighting large scope to change perceptions. However, most policyholders also believe insurers should focus on getting the basics right, not introducing new innovations.
• An issue for insurance brands is that owners hope to never need to use the product, and many only want to hear from their insurer when a policy is up for renewal. This lack of engagement throughout a policy term can lead to policyholders becoming somewhat disinterested in product specifics.
• Maintaining trust and satisfaction is key. In a market where policyholders are conditioned to shop around when renewing a policy, it is important for insurers to offer ongoing discounts and rewards to ensure they remain competitive.

This Report Looks at the Following Areas:

• The short-, medium- and long-term impact of the economic climate and regulation on insurance
• Reasons why policyholders take out insurance products
• Customer interest in policy features that insurance providers should offer
• Consideration of sharing data with insurers in exchange for personalised policy recommendations, and the types of data customers are willing to share
• Level of comfort with insurance companies using AI to undertake certain processes
• Policyholder interest in purchasing insurance for individual items, using alternative payment methods, ‘on-demand’ insurance, and in a single policy that covers all their respective insurance needs

Market Definitions

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

General insurance is insurance that covers (non-life) risks for a limited period, typically one year.

The main sectors are:

• Motor – Motor policies cover the legal liabilities arising from the use of a motor vehicle, such as a private car or motorcycle. Comprehensive policies additionally cover damage to the vehicle (see UK Motor Insurance).
• Household – Household policies cover specified property that may be damaged or destroyed by events or perils such as fire, storm, subsidence or theft (see UK Home Insurance).
• Accident and health – Comprises two main types of business: personal accident and medical expenses. Personal accident policies will pay a lump sum or weekly benefits in the event of accidental death or a specified injury. PMI (Private medical insurance) will pay the costs of medical treatment for acute conditions (see UK Consumers and Health Insurance).
• Pecuniary loss – Relates to financial losses that may have occurred, includes travel insurance, pet insurance, legal expenses, etc.
• Other lines – includes extended warranties and mobile phone and gadget insurance

Also relevant for this Report:

• Protection products – cover a person or their dependents should they lose their ability to earn an income. The largest sectors are term assurance and whole-of-life insurance.