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Market Research Report

UK Personal Lines Insurance: Distribution and Marketing 2017

Published by GlobalData Product code 421283
Published Content info 47 Pages
Delivery time: 1-2 business days
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UK Personal Lines Insurance: Distribution and Marketing 2017
Published: January 18, 2018 Content info: 47 Pages
Description

Purchasing preferences across all lines of personal insurance indicate that customers continue to purchase via the direct channel more than any other. The channel holds over 41% share of the personal lines market and is particularly strong in private motor, the largest line by written premiums, where it holds about 57% share. The broker channel saw a fall in its share by 0.9 percentage points (pp), with its resilience largely reliant on the less differentiated brands on price comparison sites.

Consumers are increasingly opting to purchase direct from insurers, which is perhaps unsurprising given the rising use of online and smartphones to purchase cover. This has come at the cost of brokers, which must embrace technology but risk losing channel differentiation with direct players. There was little difference in customer switching between the two main channels, direct and brokers, in 2017. Pet customers were slightly more likely to switch when using the direct channel, while car and home customers were less loyal when using brokers.

Comparethemarket.com was dominant among comparison sites in 2017, enjoying a healthy lead in all four lines in terms of use by survey respondents. Its highest share was about48% of the pet market. Admiral proved popular with consumers using this channel - it was the most selected direct brand for motor and travel.

Aviva is the prevalent brand in the personal lines market according to our 2017 survey results. It finished in the top three for car, home, and travel insurance. The largest share of respondents in a single market was held by Petplan, which accounts for 23.8% of the pet sector.

The report "UK Personal Lines Insurance: Distribution and Marketing 2017", explores customer purchasing behavior and how consumer preferences are changing over time. The report uncovers the differences, expected market share, key insurance brands, and footprint by product each key distribution channel accounts for. It also provides a forecast on how the personal lines distribution split will evolve over the next few years, and looks into the key trends and new propositions that will shape the industry.

Companies mentioned in this report:Aviva, Admiral, Direct Line, Churchill, Petplan, Animal Friends, AXA, Insure & Go, Hastings, Saga, AA, Swinton, Bought By Many, Staysure, , Barclays, Lloyds Bank, Halifax, , Tesco, Co-op Insurance, M&S Bank, Santander, HSBC, Natwest, Boots, Pets at Home, Asda, Morrisons, Sainsbury's, Thomas Cook, Comparethemarket.com, Moneysupermarket.com, Confused.com, Gocompare.com, LV=, , Homeserve, Age UK, RIAS, Uki Partnerships, Bupa, RAC, NFU Mutual, Back Me Up, Ageas, Cuvva, Metromile, Amazon, Policy Genius, Brolly, Wrisk, Neos, Petrics, Insure The Box, Hastings Direct, Swinton, Adrian Flux, A-Plan, Arthur J. Gallagher, SimpleSurance, Claims Made Easy, N26, UK General, CompareChecker, The Zebra.

Scope

  • The direct channel is pulling away from the broker space as the most frequently used channel by personal lines insurance customers. It has benefitted from increased use of technology, improving the ability to sell straight to customers.
  • The banking and affinity channels' share of insurance distribution remain static due to a combination of good access to consumers but little innovation.
  • Our 2017 UK Insurance Consumer Survey found that Comparethemarket.com was the most popular comparison site used to purchase all four sub-categories of personal insurance in 2017.

Reasons to buy

  • Understand consumer purchasing decisions and how these will influence the market over the next few years.
  • Improve customer engagement by recognizing what is most important to consumers and how the purchasing journey can be developed to meet their needs.
  • Discover the most selected providers across each key distribution channel, and which of these channels boasts the best customer loyalty.
  • Have a view on which insurance brands and products account for the lion's share of marketing spend.
  • Discover the top 50 brokers in the UK, with profiles on the top five.
  • Read about key emerging players, with profiles on start-ups and apps in the major channels.
Table of Contents
Product Code: FS0099IA

Table of Contents

Table of Contents

  • Executive Summary
  • Direct Channel
  • Broker Channel
  • Bank Channel
  • Affinity Channel
  • MGA Channel
  • Price Comparison Site Channel
  • Marketing
  • Future Market

Appendix

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