Table of Contents
Executive Summary
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- The impact of COVID-19 on the car insurance market
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on car insurance, May 2021
- The market
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- Figure 2: Gross written premiums, private motor insurance, actual, estimated, forecast and projected, IoI, RoI and NI, 2016-26
- Figure 3: Index of gross written premiums, actual, estimated, forecast and projected, IoI, RoI and NI , 2016-26
- Market Drivers
- Cost of car insurance down slightly in 2019/20 – but still high
- Increased policy count, reduced claims count in RoI
- Steady growth in number of cars on the road across Ireland
- Car travel retains central position in Irish consumers’ lives
- Who’s innovating?
- Managing claims digitally
- Ownership of cars could change as more work at home
- Amazon breaking into the car insurance sector
- The consumer
- Car ownership at 78% in NI, 74% in RoI
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- Figure 4: Consumers who currently own their own car, by gender and age, NI and RoI, January 2021
- Fully comprehensive cover most popular policy among Irish motorists
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- Figure 5: Consumers who currently own their own car, by age of children in household, NI and RoI, January 2021
- Most motorists stay with existing insurer at renewal time
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- Figure 6: Consumer behaviour when last arranged/renewed their car insurance policy, NI and RoI, January 2021
- Two thirds of RoI, more than half of NI motorists pay premium upfront
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- Figure 7: How consumers pay for their car insurance renewal, NI and RoI, January 2021
- High level agreement that shopping around is necessary
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- Figure 8: Agreement with statements relating to car insurance, NI and RoI, January 2021
- Irish motorists very open to using technology to save
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- Figure 9: Agreement with statements relating to car insurance, NI and RoI, January 2021
- Most motorists are happy with their current car insurance policy
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- Figure 10: Agreement with statements relating to car insurance, NI and RoI, January 2021
- What we think
The Market – Key Takeaways
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- Cost of car insurance down slightly in 2019/2020 – but still high
- Increased policy count, reduced claims count in RoI
- Steady growth in number of cars on the road across Ireland
- Car travel retains central position in Irish consumers’ lives
Market Size and Forecast
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- Short-, medium- and long-term impact on the industry
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- Figure 11: Short-, medium- and long-term impact of COVID-19 on car insurance, May 2021
- Car insurance market to return to growth in 2021
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- Figure 12: Gross written premiums, private motor insurance, actual, estimated, forecast and projected, IoI, RoI and NI, 2016-26
- Steady – albeit moderate – growth to resume from 2021 onwards
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- Figure 13: Index of gross written premiums, actual, estimated, forecast and projected, IoI, RoI and NI , 2016-26
Market Drivers
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- Average annual premiums fall in RoI after successive increases
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- Figure 14: Average motor insurance premium, by coverage type, RoI, 2009-19
- UK (including NI) average premiums down slightly in 2020
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- Figure 15: Average motor insurance premium, by coverage type, UK (incl. NI), 2013-20
- NI the fifth costliest region in UK for car insurance premiums
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- Figure 16: Average motor insurance premium, by region, UK, Q4 2020
- Motorists aged 20-24 paying highest car insurance premiums in UK (including NI)
- More policies, fewer claims but total claims cost up in RoI
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- Figure 17: Total number of motor insurance claims, 000s, RoI, 2009-19
- Figure 18: Total cost of motor insurance claims, € millions, RoI, 2009-19
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- Figure 19: Average cost per claim, injury claims, damage claims and all claims, €, RoI, 2009-19
- Number of claims per 1,000 policies almost halved between 2009 and 2019
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- Figure 20: Number of claims per 1,000 policies, RoI, 2009-19
- Figure 21: Claims per 1,000 policies, by type of claim, RoI, 2019
- Growing gap between average premium and average claims per policy
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- Figure 22: Average motor insurance premium versus average cost of claims per policy, €, RoI, 2009-19
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- Figure 23: Loss ratio, car insurance, RoI, 2009-19
- Continued growth in number of cars on NI roads
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- Figure 24: Number of licenced private cars, NI, 2014-20*
- NI vehicle fleet ageing despite new registrations
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- Figure 25: Average age of licenced vehicles, by vehicle type, NI, 2018-20*
- Number of private cars in RoI now almost 2.2 million
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- Figure 26: Vehicle population, all vehicles and private cars, millions, RoI, 2008-19
- 40% of private cars in RoI are new or relatively new
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- Figure 27: Private cars, by year of registration, 000s, RoI, 2006-19
- Cars remain the preferred mode of transport among NI consumers
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- Figure 28: Average number of journeys per person per year, by mode, NI, 2014-19
- Figure 29: Proportion of all journeys where the main mode of travel is walking, cycling or public transport, NI, 2009-19
- Car journeys account for three quarters of all journeys in RoI
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- Figure 30: Percentage distribution of journeys by mode of travel, RoI, 2014 and 2019
- Figure 31: Percentage distribution of journeys, by mode of travel and degree of urbanisation, RoI, 2019
- But slight decline in average number of kilometres driven by RoI consumers
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- Figure 32: Average vehicle kilometres per annum, private cars, RoI, 2010-19
- High attachment to cars among owners, but efforts to reduce use
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- Figure 33: Agreement with statements about cars and car use, NI and RoI, 2021
- Most motorists driving less now than 12 months ago
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- Figure 34: Whether consumers are driving more, the same, or less in an average month as against 12 months ago, NI and RoI, January 2021
- Older motorists most inclined to be driving a lot less
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- Figure 35: Consumers who are driving a lot less in an average month as against 12 months ago, by gender and age, NI and RoI, January 2021
- Number of collisions on NI roads lowest in almost 60 years
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- Figure 36: Reported injury road traffic collisions and casualties, NI, 2011-20
- Improvement in certain – but not all – road safety statistics in RoI
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- Figure 37: Selected road policing statistics, RoI, 2017-20
- Men aged 18-24, women aged 25-34 most likely to have been in accidents in RoI
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- Figure 38: Individuals who were involved in any road traffic collision in previous 12 months, %, by gender and age, 2019
Companies and Innovations – Key Takeaways
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- Managing claims digitally
- Ownership of cars could change as more work at home
- Amazon breaking into the car insurance sector
Who’s Innovating?
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- Insurance claims go digital
- Insurance may need to evolve with new ownership types
- Big tech could be an emerging competitive threat
Companies and Brands
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- Abbey Insurance Brokers/Abbey Autoline
- 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
- Recent developments
- 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
- Recent developments
- Liberty Insurance
- Key facts
- Product portfolio
- Recent developments
- An Post Insurance
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank
- Key facts
- Product portfolio
- Recent developments
- 123.ie (RSA Ireland)
- Key facts
- Product portfolio
- Recent developments
The Consumer – Key Takeaways
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- Car ownership at 78% in NI, 74% in RoI
- Fully comprehensive cover most popular policy among Irish motorists
- Most motorists stay with existing insurer at renewal time
- Two thirds of RoI, more than half of NI motorists pay premium upfront
- High level agreement that shopping around is necessary
- Irish motorists very open to using technology to save
- Most motorists are happy with their current car insurance policy
Car Ownership
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- Around three quarters of all consumers own a car
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- Figure 39: Consumers who currently own their own car, by gender and age, NI and RoI, January 2021
- Social class and household income factors in car ownership
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- Figure 40: Consumers who currently own their own car, by social class and household income, NI and RoI, January 2021
- Car ownership increases with presence of children in household
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- Figure 41: Consumers who currently own their own car, by age of children in household, NI and RoI, January 2021
- Most non-car owners do not currently have a driving licence
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- Figure 42: Reasons for not owning a car, NI and RoI, January 2021
- Around half of all consumers purchased a car from new
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- Figure 43: Details of car ownership, NI and RoI, January 2021
Type of Car Insurance Held
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- Majority of consumers have fully comprehensive cover
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- Figure 44: Consumers who currently own their own car, by age of children in household, NI and RoI, January 2021
- Only half of 17-24 year olds have fully comprehensive insurance
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- Figure 45: Consumers who have fully comprehensive car insurance, by gender and age, NI and RoI, January 2021
- Men and younger drivers most likely to have third party or TPFT cover
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- Figure 46: Consumers who have third party or TPFT car insurance, by gender and age, NI and RoI, January 2021
Renewal Behaviour
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- Majority of motorists stick with existing insurer at renewal time
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- Figure 47: Consumer behaviour when last arranged/renewed their car insurance policy, NI and RoI, January 2021
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- Figure 48: Consumers who stayed with existing insurer and consumers who shopped around at last car insurance renewal, NI and RoI, January 2021
- Younger motorists least inclined to shop around when renewing
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- Figure 49: Consumers who shopped around at last car insurance renewal, by gender and age, NI and RoI, January 2021
- Motorists aged 45+ most likely to stick with existing insurer
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- Figure 50: Consumers who stayed with existing insurer at last car insurance renewal, by gender and age, NI and RoI, January 2021
How Consumers Pay Their Premiums
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- Most motorists pay annual premium upfront when renewing
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- Figure 51: How consumers pay for their car insurance renewal, NI and RoI, January 2021
- Age, income and financial health determine if premium paid upfront
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- Figure 52: Consumers who pay their annual car insurance premium in one payment, by gender and age, NI and RoI, January 2021
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- Figure 53: Consumers who pay their annual car insurance premium in one payment, by annual household income, NI and RoI, January 2021
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- Figure 54: Consumers who pay their annual car insurance premium in one payment, by own assessment of financial health, NI and RoI, January 2021
- Young, low earners without cash to spare paying premiums monthly
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- Figure 55: Consumers who pay their annual car insurance premium monthly by direct debit, by gender and age, NI and RoI, January 2021
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- Figure 56: Consumers who pay their annual car insurance premium monthly by direct debit, by annual household income, NI and RoI, January 2021
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- Figure 57: Consumers who pay their annual car insurance premium monthly via direct debit, by own assessment of financial health, NI and RoI, January 2021
Shopping Around and Comparing Prices
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- Consumers convinced of need to shop around and compare prices
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- Figure 58: Agreement with statements relating to car insurance, NI and RoI, January 2021
- Motorists aged 17-24 least inclined to believe in merits of shopping around
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- Figure 59: Agreement with statement ‘I believe you have to shop around at renewal to get the best deal’, by gender and age, NI and RoI, January 2021
- Motorists aged 55+ least inclined to use price comparison sites
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- Figure 60: Agreement with statement ‘I have used a price comparison site to look for cheaper insurance in the last 12 months’, by gender, age and social class, NI and RoI, January 2021
Attitudes Towards Electric Cars and Technology
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- High-level willingness to consider alternative methods to save
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- Figure 61: Agreement with statements relating to car insurance, NI and RoI, January 2021
- Openness to dash camera use high across all demographics
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- Figure 62: Agreement with statement ‘the opportunity for cheaper premiums would make me willing to use a dash camera’, by gender and age, NI and RoI, January 2021
- Motorists 17-44 keenest on idea of cheaper premiums for electric cars
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- Figure 63: Agreement with statement ‘I think driving an electric car should be rewarded with cheaper premiums’, by gender and age, NI and RoI, January 2021
- Men and younger drivers most likely to oppose car telematics
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- Figure 64: Agreement with statement ‘I think car telematics (eg black box) unfairly rate driving abilities’, by gender and age, NI and RoI, January 2021
Satisfaction with (and use of) Current Policy
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- Vast majority of motorists happy with current policy
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- Figure 65: Agreement with statements relating to car insurance, NI and RoI, January 2021
- Satisfaction with current policy high across all demographics
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- Figure 66: Agreement with statement ‘I am happy with my current car insurance policy’, NI and RoI, January 2021
- Men and younger motorists most likely to submit claims
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- Figure 67: Agreement with statement ‘I’ve made a claim on my car insurance in the last 3 years’, by gender and age, NI and RoI, January 2021
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Generational cohort definitions
- Abbreviations
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