Total premiums in the general insurance market decreased for the second consecutive year in 2013, and data for the first three quarters of 2014 suggests that income will also have fallen in 2014. The two largest markets – motor insurance and home insurance – both saw a reduction in premiums, as providers lowered premiums, partly as a result of greater competition, but also because of relatively low claims costs. The general insurance market remains highly price driven, with low levels of consumer loyalty and high levels of switching.

However, Mintel’s research has found that consumers want to understand more about the general insurance products that they buy – how their premiums are calculated, how many claims their insurer rejects and more clarity about what their policy does and doesn’t cover. Providing this information would increase trust, improve loyalty and, by doing so, should make the market less cost focused. By giving consumers more information to compare, consumers can make a more educated decision.

This report provides a broad overview of the general insurance market, in terms of market size, underwriting share and market segmentation, as well as an outline of the main players in the market. It offers consumer research on general insurance product ownership, purchasing and researching behaviours, and attitudes and ownership of add-ons. It also looks at general attitudes towards insurance, focusing on issues of transparency, fairness and trust.

This report is a consumer research-focused overview of the UK personal lines general insurance market.

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

The main sectors within the personal lines market 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.

Household – household policies cover specified property that may be damaged or destroyed by events or perils such as fire, storm, subsidence or theft.

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. Private medical insurance (PMI) will pay the costs of medical treatment for acute conditions.

Pecuniary loss – relates to financial losses that may have occurred, includes travel insurance, pet insurance, legal expenses etc.

Gross written premium (GWP) – premium income accepted during the year, which is quoted gross of reinsurance ceded, but net of reinsurance accepted.

Net written premium (NWP) – premium income net of reinsurance ceded but gross of commission, and excluding Insurance Premium Tax.

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