- Contents
- *Overview
- What you need to know
- Key Issues Covered in this Report
- Issues covered in this Report
- Definitions
What you need to know
Among Irish consumers, minimising the cost of car insurance remains the chief goal – with consumers more likely to shop around for better quotes, and placing price above other considerations such as inclusion of breakdown cover when choosing an insurance supplier. This goal is likely to only get stronger in light of the COVID-19 outbreak, with Irish consumers likely to worry about the future of the economy and their own finances – thus likely to tighten spending on policies. Furthermore consumers delaying spending on new cars will impact the level of new policies on new vehicles further restraining growth.
Key Issues Covered in this Report
The impact of COVID-19 on consumer behaviour and market dynamics in the car insurance sector
How have car insurance premiums changed between 2018-20 and what impact will the COVID-19 lockdown have
What types of car insurance do drivers prefer
Examining renewal behaviours and what factors are most important to Irish drivers when renewing their car insurance
What car insurance policies do drivers prioritize
Issues covered in this Report
This Report analyses the private car insurance market in NI (Northern Ireland) and RoI (Republic of Ireland). This includes an analysis of the main drivers impacting upon the sector, together with an assessment of the size and direction of the market. In addition, drawing on extensive consumer research (Toluna, January 2020), this Report analyses the level of ownership of car insurance among Irish consumers, the type of insurance owned, the main providers of insurance to Irish consumers, the channels used to purchase car insurance, renewal behaviour and general attitudes towards car insurance and car insurers.
Definitions
Motor insurance includes cover for motor vehicles, including cars, motorcycles, vans, etc. This includes the following types:
Third party – covers liability for injuries to other people (including passengers), damage to other people’s property, liability of passengers for accidents caused by them and liability arising from use of a caravan or trailer.
TPFT (Third party, fire & theft) – as above plus cover for fire damage and theft of vehicle.
Comprehensive – is the most popular form of motor insurance and includes protection of the policyholder’s vehicle in addition to the cover available through a TPFT policy. Policies may also offer additional benefits such as medical expenses and legal costs.
Other terms used in the Report include:
GWP (Gross Written Premium) – premium income accepted during the year, which is quoted gross of reinsurance ceded, but net of reinsurance accepted.
NWP (Net Written Premium) – premium income net of reinsurance ceded but gross of commission and excluding premium tax.
Reinsurance – the cover insurance companies can purchase to protect themselves against large losses or an unexpected aggregation of losses.
Underwriting result – the profit or loss achieved by an insurer on insurance underwriting activity, calculated as premium income less the cost of claims and the insurer’s expenses in connection with that business. It has been common for insurers to make underwriting losses since they also receive investment income, which generally offsets the underwriting loss.
