Table of Contents
Executive Summary
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- The market
- GWP continued to decrease in 2014
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- Figure 1: General insurance revenue – Retail products – UK risks, by GWP, 2009-14
- Despite the fall in gross written premiums, underwriting results improved in 2013
- 87% of consumers own at least one general insurance product
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- Figure 2: General insurance product ownership, September 2014
- Companies, brands and innovation
- Aviva increased its position as the largest underwriter in 2013
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- Figure 3: Largest personal lines underwriters, by GWP, 2011-13
- General insurance adspend continued to decrease in 2013/14
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- Figure 4: Topline adspend for general insurance products, 2011/12-2013/14
- The consumer
- Expenditure on general insurance products
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- Figure 5: Total amount spent on insurance products, September 2014
- Ownership of add-ons and standalone policies
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- Figure 6: Purchasing of add-ons, September 2014
- Attitudes towards add-on products
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- Figure 7: Attitudes towards add-ons, September 2014
- Channels used to purchase general insurance products
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- Figure 8: Channels used to purchase general insurance products, September 2014
- Sources used to research general insurance products
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- Figure 9: Sources used to research general insurance products, September 2014
- Attitudes towards general insurance
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- Figure 10: Attitudes towards general insurance, September 2014
- “They’re not all the same”
- What we think
Issues and Insights
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- Policyholders would reward insurers for greater transparency
- The facts
- The implications
- Publishing claims data can help providers to stand out from the crowd
- The facts
- The implications
- The add-on market is not currently working for consumers
- The facts
- The implications
Trend Application
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- Providers can reassure consumers by exposing their claims process
- Providers can harness technology to improve the customer experience
- Mintel Futures: Generation Next
General Insurance Market Size
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- Key points
- Total gross written premiums decreased in 2013…
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- Figure 11: General insurance revenue – Retail products – UK risks, by GWP, 2009-13
- …yet, underwriting results increased
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- Figure 12: General insurance – Retail products – UK outgo and underwriting result, 2009-13
Market Segmentation
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- Key points
- Motor insurance dominates the general insurance market
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- Figure 13: Share of premium income, by sector, UK general insurance retail products, 2013
- Underwriting performance improved in all general insurance markets in 2013
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- Figure 14: Underwriting ratio – UK general insurance retail products, 2009-13
- Motor, household and accident and health reduced their claims ratios
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- Figure 15: Claims ratio – UK general insurance retail products, 2009-13
Underwriter Share
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- Key points
- Aviva remained the largest general insurance underwriter in 2013
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- Figure 16: Largest personal lines underwriters, by GWP, 2011-13
Companies and Products
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- Aviva
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 17: Key financial data for Aviva UK & Ireland General Insurance business, Interim results for first nine months, 2013 and 2014
- Figure 18: Key financial data for Aviva UK & Ireland General Insurance business, 2012 and 2013
- Recent activity
- Ageas
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 19: Key financial data for Ageas UK, Non-life insurance business, H1 2013 and H1 2014
- Figure 20: Key financial data for Ageas Insurance Limited, UK business, 2012-13
- Recent activity
- AXA
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 21: Key financial data for AXA Insurance plc, 2012 and 2013
- Recent activity
- Bupa
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 22: UK market unit results, H1 2013 and H1 2014
- Figure 23: UK market unit results, FY 2012 and FY 2013
- Direct Line Group
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 24: Key financial data for Direct Line Group, 2012 and 2013
- Figure 25: Key financial data for Direct Line Group, interim results for the first six months 2013 and 2014
- Recent activity
- LV=
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 26: Key financial data for LV= Group, General Insurance business, H1 2013 AND H1 2014
- Figure 27: Key financial data for LV=, 2012 and 2013
- Recent activity
- RSA
- Company background
- Product range
- Distribution strategy
- Key data
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- Figure 28: Key financial data for RSA UK Insurance, H1 2013 AND H1 2014
- Figure 29: Key financial data for RSA UK Insurance, 2012 and 2013
- Recent activity
Brand Communication and Promotion
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- Key points
- General insurance adspend continues to decrease in 2013/14
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- Figure 30: Topline adspend for general insurance products, 2011/12-2013/14
- Adspend on home insurance catches up with car insurance
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- Figure 31: Adspend, by general insurance category, 2011/12-2013/14
- Television continues to be the most popular advertising channel
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- Figure 32: General insurance adspend, by media type, 2011/12-2013/14
- Direct Line remains the largest advertising spender but the gap has narrowed
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- Figure 33: Top 20 general insurance advertisers, 2011/12 -2013/14
- A note on adspend
General Insurance Product Ownership
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- Key points
- Only 13% of consumers don’t own a general insurance product
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- Figure 34: General insurance product ownership, September 2014
- Under-25s less likely to own insurance products
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- Figure 35: General insurance product ownership, by age, September 2014
- Figure 36: General insurance product ownership, by age, September 2014 (continued)
- Consumers who are struggling financially are less likely to own general insurance products…
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- Figure 37: General insurance product ownership, by socio-economic status, gross annual household income and financial situation, September 2014
- Figure 38: General insurance product ownership, by socio-economic status, gross annual household income and financial situation, September 2014 (continued)
- …as are those in rented accommodation
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- Figure 39: General insurance product ownership, by accommodation status, September 2014
- Figure 40: General insurance product ownership, by Accommodation status, September 2014 (continued)
Amount Spent on General Insurance Products
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- Key points
- The most common amount to spend on insurance per month is £21-£50
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- Figure 41: Total amount spent on insurance products, September 2014
- Amount spent on insurance products remains similar across differing age groups…
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- Figure 42: Total amount spent on insurance products, by age, September 2014
- …however, affordability limits spending on insurance products for lower earners
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- Figure 43: Total amount spent on insurance products, by socio-economic status, gross annual household income and financial situation, September 2014
- Car insurance drives up consumers total general insurance cost
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- Figure 44: Total amount spent on insurance products, by general insurance product ownership, September 2014
Purchasing of Add-ons
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- Key points
- Add-ons are popular in many insurance markets, despite negative publicity
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- Figure 45: Purchasing of add-ons, September 2014
- Car insurance owners are looking for more control
- Travel and mobile phone insurance are the two most popular add-ons
- Regulators need to balance the popularity of add-on cover against the risk of inappropriate sales
Attitudes towards Add-ons
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- Key points
- Concerns about consumer understanding of add-on insurance
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- Figure 46: Attitudes towards add-ons, September 2014
- Consumers less likely to shop around when purchasing add-ons…
- …however, some consumers prefer convenience to price
- There’s a risk that many consumers are covered twice
- Add-on policyholders often look for cost at the expense of understanding the level of cover
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- Figure 47: Attitudes towards add-ons, by attitudes towards add-ons
Channels Used to Purchase General Insurance Products
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- Key points
- Online purchasing channels dominate in the general insurance market
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- Figure 48: Channels used to purchase general insurance products, September 2014
- Face-to-face sales remain popular in the mobile insurance market
- Smartphones and tablets represent a small, but growing section of the market
Sources Used to Research General Insurance Products
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- Key points
- Price comparison websites are vital in helping consumers to navigate general insurance markets
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- Figure 49: Sources used to research general insurance products, by general insurance product ownership, September 2014
- Only 15% of policyholders used an adviser to help them to research the market
- Consumers who spend more on insurance are more likely to research
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- Figure 50: Sources used to research general insurance products, by total amount spent on insurance products, September 2014
Attitudes towards General Insurance
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- Key points
- Consumers want to be able to easily compare their renewal quotes
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- Figure 51: Attitudes towards general insurance, September 2014
- Consumers more likely to buy from an insurer that explained how premiums are calculated
- Policyholders have a low estimation of general insurance providers
- Consumers can reward trusted providers with loyalty
- Lower income groups are more likely to find buying insurance complicated
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- Figure 52: Attitudes towards general insurance, by socio-economic status, gross annual household income and financial situation, September 2014
- Younger consumers are prepared to pay more for companies with good claims records
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- Figure 53: Consumers who agree with the following statements about general insurance, by age, September 2014
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