Table of Contents
Executive Summary
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- The market
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- Figure 1: Estimated gross written premiums, private motor insurance, by type of policy, IoI, 2020
- Market Factors
- Premiums remain high for consumers
- RoI road collisions increase, decrease in NI
- Consumers rate their finances as ‘OK’
- Car ownership remains high in 2020
- Impact of COVID-19 on Insurance
- COVID-19 seeing calls for insurance rebates
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- Figure 2: Indexed estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
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- Figure 3: Expected impact of COVID-19 on car insurance, short, medium and long-term, 29th May
- Companies and innovations
- The Consumer
- Comprehensive cover favoured by most drivers
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- Figure 4: Types of car insurance owned, NI and RoI, January 2020
- Most drivers chose to stay with their current provider, but after shopping around
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- Figure 5: Consumer behaviours during last renewal cycle, NI and RoI, January 2020
- Price strongest motivator when choosing provider
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- Figure 6: Important factors when selecting car insurance provider, NI and RoI, January 2020
- Protected no-claims bonus a key policy feature
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- Figure 7: Policy factors that consumers prioritise, NI and RoI, January 2020
- Minimising cost key behaviour for Irish motorists
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- Figure 8: Attitudes towards car insurance, NI and RoI, January 2020
- Strong willingness to use dash cameras
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- Figure 9: Attitudes towards car insurance, NI and RoI, January 2020
- Irish drivers happy with their insurance provisions
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- Figure 10: Attitudes towards car insurance, NI and RoI, January 2020
The Market – What You Need to Know
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- COVID-19 seeing calls for insurance rebates
- Value of gross written premiums expected to increase again in 2020
- Motorists continue to face increased premiums
- Increase in road collisions, but decline in deaths
- Consumers rate their finances as ‘OK’
- Car ownership remains high in 2020
The Impact of COVID-19 on Car Insurance
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- Short, medium and long-term impact on the industry
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- Figure 11: Expected impact of COVID-19 on car insurance, short, medium and long-term, 29th May
- Opportunities and Threats
- Calls for insurers to refund drivers in light of fewer consumers using vehicles
- Aversion to public transport could see more drivers as COVID-19 restrictions ease
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- Figure 12: Selected ways in which the COVID-19 outbreak has changed behaviours for consumers and their families, IoI, March-April 2020
- Sharp decline in car sales could limit value of GWP
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- Figure 13: Total new car registrations (adjusted for COVID-19), IoI, NI and RoI, 2015-25
- Figure 14: Impact of the COVID-19 outbreak on consumer finances, NI and RoI, May 2020
- Impact on the car insurance market
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- Figure 15: Estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
- How the crisis will affect car insurance’s key consumer segments
- Consumers are still wary about venturing out
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- Figure 16: How worried consumers are about the risk of being exposed to COVID-19, IoI, March-May 2020
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- Figure 17: Consumers who are extremely worried about the risk of being exposed to COVID-19, IoI, May 2020
- Working at home could become the norm for many
- How a COVID-19 recession will reshape the car insurance sector
- Sombre financial outlook may see drivers work harder to minimize premiums
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- Figure 18: How consumers feel COVID-19 will make an impact on selected factors, NI and RoI, May 2020
- Marketing Mix
- COVID-19: Market context
Market Size and Forecast
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- Value of gross written premiums expected to increase again in 2020
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- Figure 19: Estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
- Majority of value comes from comprehensive cover
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- Figure 20: Estimated gross written premiums, private motor insurance, by type of policy, IoI, 2020
- GWP value expected to see growth to 2025
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- Figure 21: Indexed estimated gross written premiums, private motor insurance, RoI and NI, 2015-25
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- Figure 22: Total new car registrations, NI and RoI, 2015-19
Market Drivers
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- Average premium costs increase
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- Figure 23: Average cost of insurance premiums for different coverage types, RoI, 2015-18
- NI premiums remain high
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- Figure 24: Average price of fully comprehensive car insurance, by county, NI, 2019
- Figure 25: Average price of fully comprehensive car insurance, by age, NI, 2019
- CPI for car insurance shows fall in cost
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- Figure 26: Consumer price index, motor insurance, UK (inc NI) and RoI, January 2015-January 2020
- Road deaths decline in RoI during 2015-18, but collisions increase
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- Figure 27: Number of collisions, by type, RoI, 2015-19
- Figure 28: Number of claims per 1,000 policies, 2015-18
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- Figure 29: Number of claims per 1,000 policies, by type of claim, 2015-18
- NI sees decline in total collisions during 2018-19
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- Figure 30: Recorded injury road traffic collisions, by type of collision, NI, 2014/15-2018/19
- Consumers still likely to rate their finances as ‘OK’
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- Figure 31: Financial health of Irish consumers, NI and RoI, 2016-20
- Car ownership remains high in 2020
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- Figure 32: Ownership of a car, NI and RoI, 2019 and 2020
- Figure 33: Ownership of a car, by age, NI and RoI, January 2020
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- Figure 34: Actual and projected population (%),NI and RoI, by age, 2017 and 2041/6
- Car theft and relative offences
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- Figure 35: Number of theft/taking of vehicle and related offences, RoI, Q1 2015-Q3 2019
Companies and Brands – What You Need to Know
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- Offering free insurance to medics during the COVID-19 crisis
- Designating a driver quickly
- Korean app can estimate damage costs
Who’s Innovating?
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- AXA Ireland and Renault offering support during COVID-19 crisis
- GOelegido offers cover for designated drivers
- Using AI for damage estimates
Companies and Brands
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- Abbey Insurance Brokers
- Key facts
- Product portfolio
- Recent developments
- Admiral
- Key facts
- Product portfolio
- Recent developments
- Allianz
- Key facts
- Product portfolio
- Recent developments
- Allied Irish Bank
- Key facts
- Product portfolio
- Aviva
- Key facts
- Product portfolio
- Recent developments
- AXA
- Key facts
- Product portfolio
- Recent developments
- Bank of Ireland
- Key facts
- Product portfolio
- Recent developments
- Direct Line Group
- Key facts
- Product portfolio
- Recent developments
- FBD
- Key facts
- Product portfolio
- Liberty Insurance
- Key facts
- Product portfolio
- Recent developments
- An Post Insurance
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank
- Key facts
- Product portfolio
- 123.ie (RSA Insurance)
- Key facts
- Product portfolio
The Consumer – What You Need to Know
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- Comprehensive cover favoured by most drivers
- Majority of motorists stayed, but only after shopping around
- Price strongest motivator when choosing provider
- Protected no-claims bonus a key policy feature
- Minimising cost key behaviour for Irish motorists
- Strong willingness to use dash cameras
- Irish drivers happy with their insurance provisions
Type of Car Insurance Owned
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- Most Irish motorists have fully comprehensive car insurance
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- Figure 36: Types of car insurance owned, NI and RoI, January 2020
- Mature consumers those most likely to have full coverage
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- Figure 37: Consumers with fully comprehensive car insurance, by age, NI and RoI, January 2020
- Figure 38: Consumers with fully comprehensive car insurance, by social class, NI and RoI, January 2020
Renewal Behaviour
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- Majority of motorists stayed, but only after shopping around
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- Figure 39: Consumer behaviours during last renewal cycle, NI and RoI, January 2020
- RoI men more likely to stay, while women more likely to switch
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- Figure 40: Selected consumer behaviours during last renewal cycle, by gender, NI and RoI, January 2020
- Consumers of low affluence in RoI more likely to not shop around
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- Figure 41: Selected consumer behaviours during last renewal cycle, by social class, NI and RoI, January 2020
Important Factors when Choosing Providers
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- Price the clear motivator when choosing insurance provider
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- Figure 42: Important factors when selecting car insurance provider, NI and RoI, January 2020
- Price more likely to influence women drivers
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- Figure 43: Consumers who consider price an important factor, by gender, NI and RoI, January 2020
- Quality of cover second most important factor
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- Figure 44: Consumers who consider quality of cover an important factor, by age, NI and RoI, January 2020
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- Figure 45: Consumers who consider customer service an important factor, by age, NI and RoI, January 2020
- RoI women more inclined to consider ethical brands
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- Figure 46: Consumers who consider an ethical brand an important factor, by gender, NI and RoI, January 2020
Policy Considerations
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- Protected no-claims bonus a key policy feature
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- Figure 47: Policy factors that consumers prioritise, NI and RoI, January 2020
- No-claims protection most important to mature consumers
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- Figure 48: Consumers who prioritise protected no-claims bonuses on car insurance policies, by age, NI and RoI, January 2020
- RoI consumers 7 percentage points more likely to prioritise breakdown cover
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- Figure 49: Consumers who prioritise protected breakdown cover on car insurance policies, by area type, NI and RoI, January 2020
- Courtesy car more likely to appeal to NI drivers
Price Comparisons
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- Strong consumer focus on getting lowest possible premiums
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- Figure 50: Attitudes towards car insurance, NI and RoI, January 2020
- Figure 51: Agreement with the statement ‘I believe you have to shop around at renewal to get the best deal’, by age, NI and RoI, January 2020
- NI consumers more likely to have used price comparison websites
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- Figure 52: Agreement with the statement ‘I have used a price comparison site to look for cheaper insurance in the last 12 months’, by age, NI and RoI, January 2020
Technology Behaviours
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- Three quarters of drivers willing to use a dash cam
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- Figure 53: Attitudes towards car insurance, January 2020
- RoI consumers more likely to seek car management app
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- Figure 54: Agreement with the statement ‘I would like to be able to manage various aspects of owning a car (eg car insurance, MOT) through one app’, by age, NI and RoI, January 2020
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- Figure 55: Device ownership, by age, NI and RoI, January 2020
Car Insurance Behaviours
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- Strong satisfaction among drivers with their current policies
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- Figure 56: Attitudes towards car insurance, NI and RoI, January 2020
- Figure 57: Agreement with the statement ‘I've made a claim on my car insurance in the last 3 years’, by age, NI and RoI, January 2020
- Women more likely to be satisfied with policy
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- Figure 58: Agreement with the statement ‘I am happy with my current policy’, by gender, NI and RoI, January 2020
- Drivers think greener cars deserve leaner premiums
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- Figure 59: Desired fuel type for future car purchase, NI and RoI, December 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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