Table of Contents
Introduction
-
- Market definitions
- Abbreviations
Executive Summary
-
- The market
-
- Figure 1: Forecast of motor insurance GWP (personal lines), 2007-17
- Market factors
- Premium inflation stabilises
- Net claims fall back below NWP
- Government ban on referral fees looms
- Competition Commission to review the motor insurance market
- Young adults shunning driving tests due to motoring costs
- Multiple car ownership on the wane
- Companies, brand communication and innovation
- Direct Line Group is the lead underwriter in the motor insurance market
-
- Figure 2: Top five personal motor underwriters, by gross written premiums, 2011 (UK insurers only)
- AA continues to lead the way on trust
-
- Figure 3: Attitudes towards and usage of brands that have a presence in the motor insurance sector, November 2012
- Motor insurance adspend declined in 2012
- Who’s innovating?
- The consumer
- Motor insurance ownership
-
- Figure 4: Car insurance ownership, December 2012
- Policy additional extras
-
- Figure 5: Additional motor insurance policy extras, December 2012
- Motor insurance arrangement
-
- Figure 6: Channels used to arrange motor insurance, December 2012
- Renewal behaviour
-
- Figure 7: Car insurance renewal behaviour, December 2012
- Attitudes towards telematics
-
- Figure 8: Attitudes towards telematics insurance, December 2012
- Attitudes towards motor insurance
-
- Figure 9: Attitudes towards motor insurance, December 2012
- What we think
Issues in the Market
-
- Telematics: where is it now?
- Has the level of churn increased in the last year?
- Does brand and quality matter, or are costs more important?
- What is being done to tackle rising bodily injury claims?
Trend Application
-
- Your privacy is important to us
- A fun twist to vehicle breakdowns
- Mintel futures: Human
Market Drivers
-
- Key points
- Premiums declined slightly towards the end of 2012
-
- Figure 10: AA BIPI Motor Third Party and Comprehensive shoparound premium trends, October 2008-October 2012
- Net claims back below NWP
-
- Figure 11: NWP and net claims for UK personal motor insurance, 2001-11
- Personal injury claims continue to grow
-
- Figure 12: Average UK motor claims payout, by type, 2007-11
- ABI releases guidance on how to deal with whiplash
- Referral fee ban set for April 2013
- Claims volumes continue to fall, helping to stem losses
-
- Figure 13: Total number of private UK car insurance claims notified and claims frequency, 2003-12
- OFT refers the motor insurance market to the Competition Commission
- Number of cars on UK roads remains stable
-
- Figure 14: UK car parc, 2000-11
- Men more likely to have a driving licence, but learner drivers are falling
-
- Figure 15: Full GB driving licence holders, by gender, 1975/76-2011
- New car registrations still below pre-recession levels
-
- Figure 16: UK new car registrations, 2002-12
- Fuel prices up significantly since January 2010
-
- Figure 17: Trend in petrol and diesel pump prices, January 2010-October 2012
- Growth in one-car and no-car households on the up
-
- Figure 18: Number of cars in household, 2010-12
- Gender-neutral pricing has finally arrived
SWOT Analysis
-
-
- Figure 19: SWOT analysis – personal motor insurance market, March 2013
-
Who’s Innovating?
-
- Key points
- Telematics continues to evolve
- Autosaint provides real-time driving updates to parents
- Vauxhall Motors embraces telematics insurance
- Apps for telematics
- Aviva launches ‘Aviva Drive’
- ‘MotorMate’ app debuted by confused.com
- ‘Try before you buy’ telematics app from the AA
- Bundled motor insurance
- Direct Line launches Together
- Santander offers car insurance deal to existing customers
- Other developments
- LV= scraps upper age limits for car insurance
- Confused.com launches QuickQuote
Market Size and Forecast
-
- Key points
- Minimal growth in GWP expected in 2012
-
- Figure 20: Personal lines of motor insurance, GWP, 2006-12
- Following a record loss in 2010, underwriting losses shrink rapidly in 2011
-
- Figure 21: Breakdown of personal motor insurance market, by GWP, NWP, total outgoings and underwriting result, 2006-11
- Market forecast
- GWP expected to increase over the next five years
-
- Figure 22: Forecast of motor insurance GWP (personal lines), 2007-17
- Figure 23: Forecast of motor insurance GWP (personal lines) 2007-17
- Forecast methodology
- Fan chart explanation
Market Share
-
- Key points
- Direct Line Group is still the number one player in the motor insurance market
-
- Figure 24: Top 15 personal motor underwriters, by gross written premiums, 2010 and 2011 (UK insurers only)
- A note on Admiral
Companies and Products
-
- Admiral Group
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
-
- Figure 25: Key financial data for Admiral Group plc UK Car Insurance, 2010-12
- Recent activity
- Promotional/marketing activities
- Aviva
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
-
- Figure 26: Aviva UK general insurance financials, 2011 and 2012
- Recent activity
- Promotional/marketing activities
- AXA
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
- Recent activity
- Promotional/marketing activities
- Direct Line Group
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
-
- Figure 27: DLG motor insurance financials, 2011 and 2012
- Recent activity
- Promotional/marketing activities
- LV=
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
-
- Figure 28: Key financial data for LV= General Insurance, 2010 and 2011
- Recent activity
- Promotional/marketing activities
- RSA
- Company background/description
- Relevant brands/subsidiaries
- Motor insurance product range
- Distribution channels
- Financial performance/key data
-
- Figure 29: RSA financials, 2011 and 2012
- Recent activity
- Others
- The AA (Automobile Association)
- Co-operative Insurance
- esure
- Hastings Direct
Channels to Market
-
- Key points
- Direct and intermediary channels account for 83% of motor insurance premiums
-
- Figure 30: Proportional distribution of personal lines of motor insurance, by value, 2007-11
- Online business accounts for around two thirds of sales
-
- Figure 31: Channels used to arrange motor insurance, December 2012
Brand Communication and Promotion
-
- Key points
- Advertising on motor insurance continues to see-saw
-
- Figure 32: Annual advertising expenditure on car insurance products, 2008-12
- Confused doubles adspend to displace Direct Line as top advertiser
-
- Figure 33: Top 20 advertisers of car insurance, 2008-12
- TV and direct mail account for 90% of motor insurance adspend
-
- Figure 34: Distribution of total adspend on car insurance product, by media type, 2008-12
- Advertising expenditure bucks seasonal trends in 2012
-
- Figure 35: Advertising expenditure on car insurance products, by month, 2009-12
Brand Research
-
- Brand map
-
- Figure 36: Attitudes towards and usage of brands that have a presence in the motor insurance sector, November 2012
- Correspondence analysis
- Brand attitudes
-
- Figure 37: Attitudes, by brands that have a presence in the motor insurance market, November 2012
- Brand personality
-
- Figure 38: Insurance brand personality – macro image, November 2012
-
- Figure 39: Insurance brand personality – micro image, November 2012
- Brand experience
-
- Figure 40: Insurance brand usage, November 2012
-
- Figure 41: Satisfaction with various insurance brands, November 2012
-
- Figure 42: Consideration of insurance brands, November 2012
-
- Figure 43: Consumer perceptions of current insurance brand performance, November 2012
-
- Figure 44: Insurance brand recommendation – Net Promoter Score, November 2012
- Brand index
-
- Figure 45: Insurance brand index, November 2012
- Figure 46: Insurance brand index vs. recommendation, November 2012
- Target group analysis
-
- Figure 47: Target groups, November 2012
-
- Figure 48: Insurance brand usage, by target groups, November 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Motor Insurance Ownership
-
- Key points
- The majority of car insurance holders have a comprehensive policy
-
- Figure 49: Car insurance ownership, December 2012
- Telematics policies are still in their infancy
- Prohibitively high costs challenge younger drivers
-
- Figure 50: Car insurance ownership, by age, December 2012
- Londoners and urban dwellers less likely to have car insurance
-
- Figure 51: Car insurance ownership, by region and area, December 2012
- Homeowners present a good opportunity for cross-selling products
-
- Figure 52: Car insurance ownership, by housing situation, December 2012
Policy Additional Extras
-
- Key points
- Protecting no-claims discount is favoured by one in two drivers
-
- Figure 53: Additional motor insurance extras, December 2012
- Courtesy car and breakdown cover are popular with some drivers
- Appeal of optional extras depends on age
-
- Figure 54: Additional motor insurance extras, by age, December 2012
- Comprehensive policies more likely to be purchased with additional extras
-
- Figure 55: Additional motor insurance extras, by car insurance ownership, December 2012
Motor Insurance Arrangement
-
- Key points
- Online distribution accounts for around two thirds of sales
-
- Figure 56: Channels used to arrange motor insurance, December 2012
- Telephone is the only other widely used channel
- Minor differences in purchasing channels for motor insurance policies
-
- Figure 57: Channels used to arrange motor insurance, by car insurance ownership, December 2012
- Over-the-phone sales can lead to more add-ons
-
- Figure 58: Additional motor insurance extras, by channels used to arrange motor insurance, December 2012
Renewal Behaviour
-
- Key points
- Three quarters of drivers shop around…
-
- Figure 59: Car insurance renewal behaviour, December 2012
- ...but three in five stay with their current insurer
- Renewal behaviour has little influence on optional extras
-
- Figure 60: Additional motor insurance extras, by car insurance renewal behaviour, December 2012
- Switching behaviour driven by aggregators and price
-
- Figure 61: Channels used to arrange motor insurance, by car insurance renewal behaviour, December 2012
Attitudes Towards Telematics
-
- Key points
- Saving money and personalised risk-profiling are appealing to drivers
-
- Figure 62: Attitudes towards telematics insurance, December 2012
- Data gathering and privacy issues are a concern…
- …while installation costs also present a different challenge
- The link between good behaviour and safer driving
-
- Figure 63: Any agreement with the statement ‘Being rewarded for good behaviour would make me drive more safely/carefully’, by age, December 2012
Attitudes Towards Motor Insurance
-
- Key points
- Fraudulent and non-insured drivers are a burden for the majority
-
- Figure 64: Attitudes towards motor insurance, December 2012
- Perception of costs and the race to the bottom
- One in two drivers have heard about the gender directive
- Renewal behaviour has an influence on customer outlook
-
- Figure 65: Attitudes towards motor insurance, by car insurance renewal behaviour, December 2012
Appendix – Market Size and Forecast
-
-
- Figure 66: Motor insurance market forecast, best and worst-case scenario, 2012-17
-
Appendix – Brand Research
-
-
- Figure 67: Brand usage, November 2012
- Figure 68: Brand commitment, November 2012
-
- Figure 69: Brand momentum, November 2012
- Figure 70: Brand diversity, November 2012
-
- Figure 71: Brand satisfaction, November 2012
- Figure 72: Brand recommendation, November 2012
-
- Figure 73: Brand attitude, November 2012
- Figure 74: Brand image – macro image, November 2012
-
- Figure 75: Brand image – micro image, November 2012
- Figure 76: Profile of target groups, by demographics, November 2012
- Figure 77: Psychographic segmentation by target groups, November 2012
-
- Figure 78: Brand usage, by target groups, November 2012
- Brand index
-
- Figure 79: Brand index, November 2012
-
Appendix – Motor Insurance Ownership
-
-
- Figure 80: Car insurance ownership, by demographics, December 2012
- Figure 81: Consumers who do not own car insurance, by demographics, December 2012
-
Appendix – Additional Extras
-
-
- Figure 82: Additional motor insurance extras, by demographics, December 2012
- Figure 83: Less important additional motor insurance extras, by demographics, December 2012
-
Appendix – Motor Insurance Arrangement
-
-
- Figure 84: Channels used to arrange motor insurance, by demographics, December 2012
-
Appendix – Renewal Behaviour
-
-
- Figure 85: Car insurance renewal behaviour, by demographics, December 2012
-
Appendix – Attitudes Towards Telematics
-
-
- Figure 86: Agreement with the statement ‘I would consider this type of policy if it saved me money on my premiums’, by demographics, December 2012
- Figure 87: Agreement with the statement ‘I like the idea of linking insurance premiums directly to driving behaviour’, by demographics, December 2012
-
- Figure 88: Agreement with the statement ‘I am concerned about how insurers could use the data gathered’, by demographics, December 2012
- Figure 89: Agreement with the statement ‘Being rewarded for good behaviour would make me drive more safely/carefully’, by demographics, December 2012
-
- Figure 90: Agreement with the statement ‘I am concerned about the costs of installing this type of technology’, by demographics, December 2012
- Figure 91: Agreement with the statement ‘This type of policy is only suitable for people with low mileage’, by demographics, December 2012
-
- Figure 92: Agreement with the statement ‘I really don’t like the idea of this type of policy’, by demographics, December 2012
- Figure 93: Agreement with the statement ‘This product is only suitable for younger drivers’, by demographics, December 2012
-
Appendix – Attitudes Towards Motor Insurance
-
-
- Figure 94: Attitudes towards motor insurance, by demographics, December 2012
- Figure 95: Further attitudes towards motor insurance, by demographics, December 2012
-
Back to top