Table of Contents
Issues in the Market
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- Key issues
- Sector focus
- Definitions
- Abbreviations
Future Opportunities
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- Reviewing and re-evaluating
- Diversity is All
Market in Brief
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- Product ownership trends and attitudes
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- Figure 1: Insurance product ownership, August 2010
- Online channels are the preferred way to arrange insurance
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- Figure 2: Preferred channels for arranging different general insurance products, August 2010
- Claims experience influences insurance attitudes and behaviour
- Demand for a simplified approach to insurance
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- Figure 3: Consumer attitudes towards general insurance products, August 2010
- General insurance sector records an underwriting loss in 2009
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- Figure 4: UK outgo and underwriting result for annual general insurance business, 2005-09
- Motor and property insurance dominate
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- Figure 5: Share of total premium income (UK annual business), by sector, 2009
- RBS and Aviva lead the way
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- Figure 6: Top five general insurance underwriters – total market (direct and facultative business), based on GWPs, 2009
Market Environment
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- Key points
- Motor insurance premiums soar in 2010
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- Figure 7: AA British premium index market average trends, Apr 08 – Oct 10
- Consumers take a more cautious approach to expenditure
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- Figure 8: Agreement with selected lifestyle statements on finance, 2006-10
- Inclination to be well insured falls slightly
- Insurance fraud remains high on the agenda
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- Figure 9: Detected general insurance fraud rates, by volume and value, 2004-09
- Households spend more than £800 per year on general insurance
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- Figure 10: Average yearly expenditure on different types of general insurance, 1998/99-2008
- Regulation
- IPT to increase from January 2010
- Solvency II implementation draws near
- Insurance Mediation Directive to be revised
- Insurance complaints increase in 2009/10
Strengths and Weaknesses in the Market
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- Figure 11: SWOT analysis for the general insurance market (personal lines), 2010
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General Insurance Market Size
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- Key points
- General insurance market contracts in 2009…
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- Figure 12: Summary of annual general insurance business – UK risks, by sector NWPs, 2005-09
- …and records an underwriting loss
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- Figure 13: UK outgo and underwriting result for annual general insurance business, 2005-09
- Looking forward
Market Segmentation
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- Key points
- Personal lines business accounts for almost 60% of premiums
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- Figure 14: Split of general insurance GWPs, by personal, commercial and MAT sectors, 2009
- Private motor and domestic property sectors account for 50% of premiums
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- Figure 15: Share of total premium income (UK annual business), by sector, 2009
- Mixed fortunes across the general insurance market
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- Figure 16: Detailed premium analysis – UK, by selected class of business, 2004/05-2008/09
Underwriter Share
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- Key points
- RBS tops the general insurance underwriting ranking
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- Figure 17: Largest general insurers/reinsuers – total market (direct and facultative business), based on GWPs, 2009
Companies and Products
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- Major players
- Aviva UK Insurance
- Company description
- Product range
- Distribution
- Key data
- Marketing and promotion
- AXA Insurance
- Company description
- Product range
- Distribution
- Key data
- Recent activity
- Marketing activity and promotion
- Chartis Insurance (AIG)
- Company description
- Product range
- Distribution
- Key data
- Royal & Sun Alliance
- Company description
- Product range
- Distribution
- Key data
- Marketing activity and promotion
- Royal Bank of Scotland Insurance
- Company description
- Product range
- Distribution
- Key data
- Marketing activity and promotion
Channels to Market
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- Key points
- The intermediary vs direct battle continues
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- Figure 18: Proportional distribution for personal lines general insurance, by value, 2000-09
- Direct channels lead in the motor insurance sector…
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- Figure 19: Proportional distribution for personal lines motor insurance, by value, 2005-09
- …but play a lesser role in the property insurance market
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- Figure 20: Proportional distribution for personal lines property insurance, by value, 2005-09
- Channel preference varies between products
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- Figure 21: Preferred channels for arranging different general insurance products, August 2010
Brand Elements
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- Key points
- Brand Map
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- Figure 22: Attitudes towards and usage of various general insurance brands, September 2010
- Awareness is high
- Supermarkets and general insurance
- Experience of general insurance brands
- Usage reflects lack of loyalty
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- Figure 23: Consumer usage of various general insurance brands, September 2010
- Brand consideration for general insurance brands
- The benefits of specialisation
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- Figure 24: Consideration of various general insurance brands, September 2010
- Brand satisfaction for general insurance brands
- Insurance specialists failing to wow their customers
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- Figure 25: Satisfaction with various general insurance brands, September 2010
- Brand commitment to general insurance brands
- More challenges for insurance specialists
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- Figure 26: Commitment to various general insurance brands, September 2010
- Brand intentions for general insurance brands
- The Post Office has scope to increase brand share
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- Figure 27: Future usage intentions for various general insurance brands, September 2010
- Brand recommendation for general insurance brands
- Non-traditional players leading the way on recommendation
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- Figure 28: Recommendation of various general insurance brands, September 2010
- Brand qualities of general insurance brands
- Few expect insurance brands to keep their promises
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- Figure 29: Personalities of various general insurance brands, September 2010
- Individual brand profiles
- Aviva
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- Figure 30: Attitudes towards the Aviva brand, September 2010
- AXA
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- Figure 31: Attitudes towards the Axa brand, September 2010
- Barclays
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- Figure 32: Attitudes towards the Axa brand, September 2010
- BUPA
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- Figure 33: Attitudes towards the BUPA brand, September 2010
- Churchill
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- Figure 34: Attitudes towards the Churchill brand, September 2010
- Direct Line
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- Figure 35: Attitudes towards the Direct Line brand, September 2010
- Lloyds TSB
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- Figure 36: Attitudes towards the Lloyds TSB brand, September 2010
- LV=
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- Figure 37: Attitudes towards the LV= brand, September 2010
- M&S
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- Figure 38: Attitudes towards the M&S brand, September 2010
- MORE TH>N
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- Figure 39: Attitudes towards the MORE TH>N brand, September 2010
- The Post Office
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- Figure 40: Attitudes towards the Post Office brand, September 2010
- SAGA
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- Figure 41: Attitudes towards the SAGA brand, September 2010
- Sainsbury’s
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- Figure 42: Attitudes towards the Sainsbury’s brand, September 2010
- Tesco
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- Figure 43: Attitudes towards the Tesco brand, September 2010
- Zurich
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- Figure 44: Attitudes towards the Zurich brand, September 2010
Brand Communication and Promotion
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- Key points
- General insurance adspend continues to decline
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- Figure 45: Topline adspend for general insurance products, 2007/08-2009/10
- Car and home insurance dominate general insurance adspend
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- Figure 46: Adspend, by general insurance category, 2007/08-2009/10
- Some growth markets
- Most insurance adspend is focused on direct mail and TV
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- Figure 47: General insurance adspend, by media type, 2007/08-2009/10
- RBS brands lead the way
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- Figure 48: Top 20 general insurance advertisers, 2007/08-2009/10
Insurance Product Ownership
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- Key points
- Note on consumer research
- Car and contents insurance lead the way
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- Figure 49: Insurance product ownership, August 2010
- Target group analysis
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- Figure 50: Target groups identified for range of general insurance products, August 2010
- Demographic drivers
- A quarter of internet users have six or more general insurance products
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- Figure 51: Repertoire of Insurance product ownership, August 2010
- Figure 52: Insurance product ownership, by repertoire of Insurance product ownership, August 2010
- Insurance product associations
Loyalty in General Insurance
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- Key points
- A lack of loyalty across the sector
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- Figure 53: Insurance products owned for under and over three years, August 2010
- Low tenure indicates some product areas are expanding
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- Figure 54: Insurance product ownership, by length of time insurance products held, August 2010
How Important Is Insurance?
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- Key points
- Car and home insurance deemed to be essential by the majority…
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- Figure 55: Consumer necessity rating for different general insurance products, August 2010
- …but other insurances are seen as a luxury
- Some products are regarded as unnecessary
- Policyholders see some products as nice to have…
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- Figure 56: Consumer necessity rating for different general insurance products, by existing policyholders, August 2010
- …and a minority think their cover is unnecessary
Attitudes and Behaviour Towards Claiming
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- Key points
- Consumers believe insurers could do better with claims handling
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- Figure 57: Consumer attitudes towards claiming, August 2010
- Improving consumer perceptions
- Most consumers understand the principle of insurance
- Claims experiences have a significant impact on perceptions
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- Figure 58: Positive and negative claim experiences, by most popular consumer attitudes towards claiming, August 2010
- Around half have never made an insurance claim
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- Figure 59: Consumer claims experience, August 2010
- Maintaining a positive experience beyond claims handling
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- Figure 60: Consumer attitudes towards claiming, by consumer claims history, August 2010
Channel Preferences for Arranging Insurance
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- Key points
- Online channels dominate general insurance distribution
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- Figure 61: Preferred channels for arranging different general insurance products, August 2010
- Channel preference differs between products
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- Figure 62: Preferred channels for arranging different general insurance products, August 2010
- Offline channels attract people seeking reassurance
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- Figure 63: Demographics for preferred channels for arranging different general insurance products, August 2010
Purchasing Considerations
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- Key points
- A balancing act between price and quality
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- Figure 64: Most important considerations when purchasing insurance among policyholders, August 2010
- Clarity of cover
- Weighing up a range of factors
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- Figure 65: Repertoire of most important considerations when purchasing insurance, August 2010
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- Figure 66: Most important considerations when purchasing insurance, by repertoire of most important considerations, August 2010
- Claims experience influences priorities
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- Figure 67: Most important considerations when purchasing insurance, by claims experience, August 2010
- Offline channels provide additional assurance
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- Figure 68: Most important considerations when purchasing insurance, by preferred channels for arranging different general insurance products, August 2010
- Different approaches to online channels
Attitudes Towards Insurance Products
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- Key points
- A third want simplicity and flexibility
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- Figure 69: Consumer attitudes towards general insurance products, August 2010
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- Figure 70: Consumer attitudes towards general insurance products, by repertoire of Insurance product ownership, August 2010
- One in four review their insurance cover on a regular basis
- Over-55s are the most likely to regularly review insurance
- Single-policy advocates want simplicity…and rewards
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- Figure 71: Most important considerations when purchasing insurance, by most popular consumer attitudes towards general insurance product, August 2010
- Policy confusion leads to more price-sensitive consumers
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- Figure 72: Most important considerations when purchasing insurance, by next most popular consumer attitudes towards general insurance product, August 2010
- Insurance claimants are more likely to review their insurance cover
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- Figure 73: Consumer attitudes towards general insurance products, by consumer claims history, August 2010
Appendix – Market Environment
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- Figure 74: Household expenditure on general insurance, by category, 1998-08
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Appendix – Insurance Product Ownership
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- Figure 75: Most popular insurance product ownership, by demographics, August 2010
- Figure 76: Next most popular insurance product ownership, by demographics, August 2010
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- Figure 77: Other insurance product ownership, by demographics, August 2010
- Figure 78: Cross-holding of most widely owned general insurance products, August 2010
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- Figure 79: Cross-holding of other general insurance products, August 2010
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Appendix – Assessing Insurance Product Necessity
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- Figure 80: Consumer necessity rating for discretionary general insurance products, by demographics, August 2010
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Appendix – Attitudes and Behaviour Towards Claiming
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- Figure 81: Most popular consumer attitudes towards claiming, by demographics, August 2010
- Figure 82: Next most popular consumer attitudes towards claiming, by demographics, August 2010
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- Figure 83: Consumer claims history, by demographics, August 2010
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Appendix – Channel Preferences for Arranging Insurance
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- Figure 84: Preferred channels for arranging different general insurance products, by demographics, August 2010
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Appendix – Purchasing Considerations
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- Figure 85: Most popular considerations when purchasing insurance, by demographics, August 2010
- Figure 86: Next most popular considerations when purchasing insurance, by demographics, August 2010
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Appendix – Attitudes Towards Insurance Products
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- Figure 87: Most popular consumer attitudes towards general insurance products, by demographics, August 2010
- Figure 88: Next most popular consumer attitudes towards general insurance products, by demographics, August 2010
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- Figure 89: Consumer attitudes towards general insurance products, by most popular consumer attitudes towards general insurance products, August 2010
- Figure 90: Consumer attitudes towards general insurance products, by next most popular consumer attitudes towards general insurance products, August 2010
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