While the motor insurance market in Ireland has been flat for a number of years, economic growth and improved consumer confidence are combining to usher in an era of sustained – if unremarkable – growth. There are more vehicles on the road than there were during the recession, and it can be expected that spending on new cars will increase as consumers become more at ease with their own financial situations. Together with an increase in general economic activity, this will increase both the volume and value of motor insurance policies.

This report examines the private motor insurance market in NI and RoI. This includes an analysis of the main market drivers, in addition to an assessment of the size and direction of the market. It also draws on consumer research to examine ownership of car insurance among Irish motorists, channels used to purchase insurance, renewal behaviour, preferred providers and general attitudes of Irish consumers towards both car insurance and car insurance providers.

• What type of motor insurance do Irish motorists have? – What is the level of ownership of car insurance among Irish motorists? What is the preferred type of cover? Do certain demographics prefer certain types of cover?

• What are the main insurers in Ireland? – Which insurers are the market leaders in NI and RoI? Does any insurer dominate the Irish market? Do different brands appeal to different demographics?

• What are the main channels to market when it comes to car insurance? – What channels do Irish consumers prefer to use when purchasing car insurance? Do certain channels (such as the telephone or face-to-face interaction) appeal to certain demographics, while other channels (such as online) appeal to other demographics?

• How do consumers behave at renewal time? – Are Irish consumers strongly inclined to shop around when their motor insurance policy comes up for renewal? Is switching among competing insurers common among consumers?

• What factors influence consumers when choosing policies? – Is price the most important factor taken into consideration by Irish consumers when purchasing a motor insurance policy? Or are other factors – such as a local branch or established brand name – more important?

• What is the overall attitude among consumers towards motor insurance companies? – Is it positive or negative? Do consumers trust motor insurance companies? Do consumers feel that their loyalty is rewarded?

• What has been Irish consumers' overall experience of car insurers? – Have consumers had good experiences when making a claim? Have many consumers had negative or disappointing experiences when making a claim?

Mintel reports of relevance include:

Motor Insurance – UK, March 2015

Insurance – Ireland, May 2014

Motor Insurance – UK, March 2014

Insurance – Ireland, May 2013

In compiling this report, Mintel has gathered data from separate NI and RoI sources (eg NISRA – Northern Ireland Statistics and Research Agency, CSO – Central Statistics Office). In some cases, therefore, it has not been possible to provide comparable data for each region.

For the purposes of this report:

• Ireland or IoI refers to the island of Ireland.

• NI refers to Northern Ireland.

• RoI refers to the Republic of Ireland.

• Therefore, ‘Irish consumers’ refers to both NI and RoI consumers.

Mintel also draws consumer insight from other sources:

• Mintel’s trend database and previous Mintel reports in the UK and Ireland.

• Exclusive consumer research commissioned by Mintel and conducted by Toluna in March 2015.

Please note that the results presented in The Consumer sections of this report relate to the usage and habits of Irish internet users only, and do not account for the behaviours of non-internet users. Eurostat (January 2015) highlights that 80% of RoI consumers have used the internet in the last 12 months, while the ONS (May 2014) highlights that 79% of NI consumers have used the internet.

The Market Size and Forecast section of this report examines only new car registrations in the automotive retailing sector in NI and RoI and excludes second-hand and used car sales, and commercial or other goods vehicles. The market shares of the top selling car brands and engine types are also covered in this section.

Please note that in the Market Size and Forecast section of this report, data is forecast by projecting how this particular market will progress based on various independent macroeconomic variables. Mintel uses economic data collected on inflation, population, exchange rate and GDP (Gross Domestic Product) to run a multivariate linear regression and trend function. With this function Mintel is able to forecast future market sizes and interpret the results based on the above variables including other independent factors the analyst interprets could change the future market. (Economic data is collected from NISRA, ONS, CSO and other statistical sources.)

This report discusses the factors that are driving and impeding demand and supply in the car insurance market in NI and RoI.

Motor insurance includes cover for motor vehicles, including cars, motorbikes, vans, etc. This includes the following types:

• Third party – covers liability for injuries to other people (including passengers), damage to other people’s property, liability of passengers for accidents caused by them, and liability arising from use of a caravan or trailer.

• Third party, fire and theft – as above plus cover for fire damage and theft of vehicle.

• Comprehensive – is the most popular form of motor insurance and includes protection of the policyholder’s vehicle in addition to the cover available through a third party, fire and theft policy. Policies may also offer additional benefits such as medical expenses and legal costs.

Other terms used in the report include:

• Gross written premium (GWP) – premium income accepted during the year, which is quoted gross of reinsurance ceded, but net of reinsurance accepted.

• Net written premium (NWP) – premium income net of reinsurance ceded but gross of commission, and excluding premium tax.

• Reinsurance – the cover insurance companies can purchase to protect themselves against large losses or an unexpected aggregation of losses.

• Underwriting result – the profit or loss achieved by an insurer on insurance underwriting activity, calculated as premium income less the cost of claims and the insurer’s expenses in connection with that business. It has been common for insurers to make underwriting losses since they also receive investment income, which generally offsets the underwriting loss.