Motor Insurance - UK - March 2020
Overview
 
What you need to know 
The UK car insurance market experienced a difficult year in 2019, with premiums falling by around 1%. Providers have faced growing pressure due to rising claims costs, a competitive environment and additional costs when the Ogden discount rate was not increased as much as the industry had anticipated. 

New regulation is also set to disrupt the industry. Insurers will need to pay more attention to loyal customers who are paying higher premiums and shift their focus away from the acquisition of new customers through cheap policies. There are also an increasing number of more flexible solutions being introduced to the market, which could lead to the traditional car insurance model being cast aside, particularly amongst younger drivers. 

In general, car insurance owners enjoy shopping around and looking for the best deal. Price is by far the most important factor when it comes to car insurance, and as a result customers do not expect to develop a longer-term relationship with their insurer. Therefore, the focus on rewarding loyalty will be a challenge, with most consumers believing that they have to shop around to get the best deal. 

Scope of this Report
This Report explores the UK domestic car insurance market. It includes discussion of the size of the market, including a forecast for the value of premiums over the next five years. Key market drivers and regulatory changes are discussed, as well as the performance and activities of major players and challengers in the industry.

Mintel’s exclusive consumer research includes brand research, looking at consumers’ awareness, use and perceptions of selected car insurers. The Report also looks at renewal behaviour and the preferred methods of interacting with insurers, as well as the most important policy features. Finally, the research explores the ways people save on their car insurance, as well as general attitudes towards the product.