Despite the extraordinary financial pressures facing Irish consumers, there is no real appetite to cancel or downgrade insurance. In part, this is due to the strong belief on the part of consumers that it is important to be well insured for everything. Some consumers (29% in RoI, 20% in NI) also believe that insurance is even more important when things are tough financially. Although some consumers have been forced by personal financial circumstances to go without insurance, there is a strong reluctance to make this decision. All of this indicates the resilient appeal of insurance. However, premiums for almost all major forms of insurance have increased quite significantly in recent years – and are continuing to increase, albeit more moderately – which may leave more consumers with little option but to cancel or downgrade cover.

The industry faces a number of serious challenges. Weak consumer confidence, declining real incomes and ongoing difficulties within the broader Irish economy are putting pressure on consumers to reduce monthly expenditure wherever possible. While the industry is resilient, it is not immune to these challenges.

Some questions answered in this report include:

How has the economic downturn impacted upon consumers’ appetite for and attitudes towards insurance? – Are consumers still as willing to opt for premium insurance options?

To what degree are insurance products affordable and accessible for consumers? – Is value for money driving consumer choice of insurance products?

What are the main channels to market within the insurance industry and where do consumers go to purchase insurance products? – What channels do consumers use to buy insurance, and how has greater internet access changed this?

What are the ownership levels among consumers across the various insurance products? – What are the most common types of insurance products?

What degree of loyalty exists among consumers towards insurers? – What are the reasons for the lack of trust that some consumers have towards insurers and the insurance industry as a whole?

How do consumers approach the purchasing of an insurance product? – What are their attitudes towards the value and importance of insurance?