Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Mintel forecasts a slow recovery for the market
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- Figure 1: Forecast for gross written premiums – UK domestic property insurance, 2013-23
- Number of claims falls
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- Figure 2: Total number of domestic property claims, 2008-17
- Brokers account for the largest proportion of sales
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- Figure 3: Share of gross domestic property insurance premiums, by sales channel, 2013-17
- Combined policy costs fall
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- Figure 4: Average combined, buildings-only and contents-only insurance premiums, 2012-17
- FCA announces investigation into motor and home insurance
- Companies and brands
- Share of top five grows
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- Figure 5: Top 20 domestic property underwriters – UK, by share of total market GWP – ABI members only, 2016 and 2017
- Simplification of application and claims process
- Adspend increases by 17%
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- Figure 6: Total above-the-line, online display and direct mail advertising expenditure on home insurance, 2014-18*
- The consumer
- Two thirds have home insurance
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- Figure 7: Insurance product ownership, October 2018
- Half consult price comparison sites
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- Figure 8: Sources of home insurance information, October 2018
- Trust is a key driver of PCW use
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- Figure 9: Trust in different sources of information, October 2018
- Accidental damage is the most popular add-on
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- Figure 10: Interest in paying extra for home insurance add-ons, by policy ownership, October 2018
- Around one in three are interested in smart security devices
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- Figure 11: Ownership and interest in smart devices for the home, October 2018
- Home insurers can add value in a number of ways
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- Figure 12: Attitudes towards home insurance, October 2018
- What we think
Issues and Insights
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- Innovations will help insurers to engage the younger demographic
- The facts
- The implications
- Trust in information drives usage of PCWs
- The facts
- The implications
The Market – What You Need to Know
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- Mintel forecasts a slow recovery for the market
- Number of claims falls
- Brokers account for the largest proportion of sales
- Combined policy costs fall
- FCA announces investigation into motor and home insurance
Market Size and Forecast
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- Market sees second year of growth in 2017
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- Figure 13: Gross and net written premiums – UK domestic property insurance, 2008-18
- Mintel forecasts a slow recovery for the market
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- Figure 14: Forecast for gross written premiums – UK domestic property insurance, 2013-23
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- Figure 15: Forecast for gross written premiums – UK domestic property insurance, at 2018 prices, 2013-23
- Forecast methodology
Claims Incurred and Underwriting Result
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- Net claims incurred rise by 6%
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- Figure 16: Total outgo and underwriting result – UK domestic property insurance, 2013-17
- Underwriting ratio remains positive at 7.9%
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- Figure 17: Domestic property insurance underwriting ratio, 2008-17
- Number of claims falls
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- Figure 18: Total number of domestic property claims, 2008-17
- A third of claims are for accidental damage
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- Figure 19: Proportional distribution of domestic property claims, by type of peril, 2017
Channels to Market
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- Brokers account for the largest proportion of sales
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- Figure 20: Share of gross domestic property insurance premiums, by sales channel, 2013-17
Market Drivers
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- IPT stays at 12%
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- Figure 21: Changes to the standard rate of IPT, 2011-18
- Majority of policies are sold as combined
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- Figure 22: Proportional distribution of home insurance sales, by product type, 2017
- Combined policy costs fall
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- Figure 23: Average combined, buildings-only and contents-only insurance premiums, 2012-17
Regulatory and Legislative Changes
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- FCA announces investigation into motor and home insurance
- The industry is already making changes
Companies and Brands – What You Need to Know
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- Share of top five grows
- Simplification of application and claims process
- Adspend increases by 17%
Market Share
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- Share of top five grows
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- Figure 24: Top 20 domestic property underwriters – UK, by share of total market GWP – ABI members only, 2016 and 2017
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- Figure 25: Largest current account providers and their home insurance underwriters, 2018
Competitive Strategies
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- Simplification of application and claims process
- Homelyfe
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- Figure 26: Homelyfe locker
- Aviva
- Using technology to add value
- Buzzvault
- Brolly
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- Figure 27: Brolly mobile app
- Trōv
- Availability of smart home insurance remains limited
- Neos
- Aviva
- AXA
- Amazon
Advertising and Marketing Activity
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- Adspend increases by 17%
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on home insurance, 2014-18*
- Gocompare.com is the biggest spender on home insurance advertising
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- Figure 29: Total above-the-line, online display and direct mail advertising expenditure on home insurance, by advertiser, 2014-18
- Nearly half of all spend on TV
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- Figure 30: Total above-the-line, online display and direct mail advertising expenditure on home insurance, by media type, 2016-18
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Two thirds have home insurance
- Half consult price comparison sites
- Trust is a key driver of PCW use
- Accidental damage is the most popular add-on
- Around one in three interested in smart security devices
- Home insurers can add value in a number of ways
Insurance Product Ownership
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- Two thirds have home insurance
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- Figure 31: Insurance product ownership, October 2018
- Significant difference in ownership between renters and homeowners
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- Figure 32: Insurance product ownership, October 2018
Source of Information
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- Half consult price comparison sites…
- …whilst 23% go direct
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- Figure 33: Sources of home insurance information, October 2018
- Recommendations are key for new customers
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- Figure 34: Sources of home insurance information, by age, October 2018
Trust in Different Information Sources
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- Trust is a key driver of PCW use
- High level of trust in information from insurers
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- Figure 35: Trust in different sources of information, October 2018
- Lettings agents have a role to play...but lack of trust is an issue
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- Figure 36: Trust in different sources of information – ‘Yes’, by housing situation, October 2018
Interest in Home Insurance Add-ons
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- Accidental damage is the most popular add-on
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- Figure 37: Interest in paying extra for home insurance add-ons, by policy ownership, October 2018
- Interest falls for other forms of cover
Most Appealing Home Insurance Features
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- Low excess is a key feature
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- Figure 38: Top three appealing features when considering a home insurance policy, October 2018
- Replacement goods can add tangible value to insurance
- Time is precious
- Tools and speed will appeal to new customers
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- Figure 39: Top three appealing features when considering a home insurance policy, by age, October 2018
Ownership and Interest in Smart Devices
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- Around one in three interested in smart security devices
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- Figure 40: Ownership and interest in smart devices for the home, October 2018
- Interest is higher among young people
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- Figure 41: Ownership and interest in smart devices for the home – ‘No, but interested in having’, by age, October 2018
- Half would share smart device data
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- Figure 42: Willingness to give an insurer access to the data collected by a smart device, October 2018
Attitudes towards Home Insurance
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- Vast majority are confident in their policy
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- Figure 43: Attitudes towards home insurance, October 2018
- Opportunities for insurers to extend their brand
- Open Banking
- Online only
- Home safety
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- Figure 44: Home insurance – CHAID – Tree output, October 2018
- Loyalty undermined by the need to switch each year
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- Figure 45: Attitudes towards home insurance, by policy ownership, October 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID Methodology
Appendix – Market Size and Forecast
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- Home insurance value forecast
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- Figure 46: Best- and worst-case forecasts for gross written premiums – UK domestic property insurance, 2018-23
- Forecast methodology
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