The general insurance market is perhaps the most competitive sector in UK retail financial services. In recent years it has attracted a plethora of new entrants, resulting in aggressive pricing and advertising strategies and an increase in switching activity. Growing pressure to remain competitive, particularly given the growth of price-comparison sites, has reduced margins and led some insurers to concentrate on customer retention rather than acquisition.

However, pursuing a retention strategy will be particularly challenging as more people switch to online channels to research and purchase insurance cover. Faced with a breadth of choice and access to a wealth of product information and opinion, consumers are now able to bypass the traditional intermediary route of purchasing insurance and make their own informed decisions.

At the same time, the deteriorating economic outlook and several high-profile banking failures have created a more uncertain and fearful consumer climate. Against this backdrop, people are looking for greater reassurance from financial providers and are more mindful about their expenditure and outgoing costs. Both of these issues will have an impact on the general insurance market in 2008 and well into 2009.

Key report issues:

The impact and implications of the economic downturn on the general insurance market.

The size of the UK general insurance market and its recent underwriting performance.

An overview of the main personal lines markets and the key issues and drivers impacting each one.

The main players in the market (in terms of underwriter share).

The changing balance in distribution, including the shift towards direct and aggregator sales.

The ownership of general insurance products.

Attitudes towards switching and renewing motor and home insurance policies.

The most important consumer considerations when buying insurance.

How consumers view the task of buying or renewing insurance.