Table of Contents
Executive Summary
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- The market
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- Figure 1: Total value of gross written premiums, private motor insurance, NI and RoI, 2010-15
- Forecast
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- Figure 2: Index of gross written premiums, private motor insurance, RoI and NI, 2010-20
- Market factors
- Motor insurance premiums set to increase in 2015
- Cash-strapped consumers not in a position to pay higher premiums
- Fraudulent claims remains a major problem for car insurers
- Car ownership in Ireland is high – and getting higher
- The consumer
- Most motorists have fully comprehensive insurance cover
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- Figure 3: Type of car insurance consumers currently have on main car, RoI and NI, March 2015
- AXA leads the way in both NI and RoI
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- Figure 4: Current provider of car insurance on main vehicle owned, NI, March 2015
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- Figure 5: Current provider of car insurance on main vehicle owned, RoI, March 2015
- Real scope to grow price comparison sales in both NI and RoI
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- Figure 6: Method used to purchase the current insurance policy for main vehicle, NI and RoI, March 2015
- Most consumers shop around at renewal time, but most still stick with existing insurer
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- Figure 7: Motor insurance renewal behaviour, NI and RoI, March 2015
- Seven in 10 consumers focused on cost when choosing car insurance policy
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- Figure 8: Agreement with statements relating to car insurance and car insurers, NI and RoI, March 2015
- What we think
Issues and Insights
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- What are the main channels to market for car insurance?
- The facts
- The implications
- What has been Irish consumers' overall experience of car insurers?
- The facts
- The implications
- What factors influence consumers when choosing policies?
- The facts
- The implications
Market Overview
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- Key points
- UK (including NI) premiums down during first three months of 2015
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- Figure 9: Average motor insurance premiums, comprehensive and TPFT, UK (including NI), Q1 2014 AND Q1 2015
- Figure 10: Average motor insurance premiums, comprehensive, UK (including NI), Q1 2010-Q1 2015
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- Figure 11: Average motor insurance premiums, by age, UK (including NI), Q1 2015
- NI motorists paying heavily for car insurance
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- Figure 12: Average motor insurance premiums, by region, UK (including NI), Q1 2015
- Further increases expected in RoI motor insurance premiums
- Premiums higher for men than women in RoI
- Only a minority could easily afford an increase in premiums
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- Figure 13: How consumers rate their current financial situation, NI and RoI, March 2015
- Fraud and exaggerated claims remain a problem for Irish insurers
- Growth due in part to tolerance of fraudulent claims among some consumers
- Around three quarters of Irish consumers own a car
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- Figure 14: Ownership of a car, NI and RoI, March 2015
- Rate of car ownership higher in NI than elsewhere in UK
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- Figure 15: Number of households with access to a car or van, NI, 2010-14
- Figure 16: Private and light goods vehicles per 1,000 of population, aged 17 and over, NI and GB, 2003-13
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- Figure 17: Private and light goods vehicles, by year of first registration, NI and GB, 2014
- Return to growth in number of vehicles on the road
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- Figure 18: New and second-hand private cars licensed for the first time, 000s, RoI, 2000-14
- Figure 19: Motor vehicles licensed for the first time, by category, RoI, 2014
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- Figure 20: Number of private cars on the road, RoI, 2000-13
- Figure 21: Number of licensed vehicles, NI, 2003-13
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- Figure 22: Vehicles registered for the first time, by type, NI, 2013
- Car usage declined during recession, but increasing again
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- Figure 23: Number of kilometres travelled, billions, by private cars, RoI, 2000-13
- Number of accidents on Irish roads remains high
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- Figure 24: Road traffic collisions resulting in fatalities and serious injuries, RoI, 2005-12
- Figure 25: Reported road traffic injury collisions per 10,000 vehicles, NI, England, Scotland and Wales, 2005-13
- Proportion of over-55s to grow in coming years
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- Figure 26: Population, by age, NI, 2011 and 2026
- Figure 27: Population, by age, RoI, 2011 and 2026
Market Size and Forecast
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- Key points
- Gross written premiums to top €1.4 billion in 2015
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- Figure 28: Gross written premiums, private motor insurance, IoI, RoI and NI, 2010-20
- After static five years, growth expected to return to Irish market in 2015
- Motor insurance industry set for period of sustained growth
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- Figure 29: Index of gross written premiums, private motor insurance, RoI and NI, 2010-20
Strengths and Weaknesses
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- Strengths
- Weaknesses
Companies and Innovations
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- Key points
- Innovations
- Dutch insurer innovates with new car insurance plug-in dubbed as Fairzekering
- Carrot partners with Fiat UK to launch innovative new package for young drivers
- Company profiles
- Insurance providers
- Admiral Group Plc
- Allianz Group Plc.
- An Post (One Direct)
- AXA Group
- Direct Line Group
- FBD
- Liberty Insurance
- Open and Direct Insurance
- RSA Insurance Ireland
- Zurich
- Retailer insurance providers
- Asda
- Tesco
- Banks and building societies
- Allied Irish Bank (AIB)
- Bank of Ireland
- Danske Bank
- Ulster Bank
The Consumer – Type of Car Insurance Owned
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- Key points
- Universal ownership of car insurance among motorists
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- Figure 30: Type of car insurance consumers currently have on main car, RoI and NI, March 2015
- Fully comprehensive policies most popular among Irish consumers
- Over-55s most likely to opt for fully comprehensive policies
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- Figure 31: Consumers who have fully comprehensive car insurance on main car, by age, NI and RoI, March 2015
- Third party cover particularly popular among younger motorists
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- Figure 32: Consumers who have third party or third party, fire and theft insurance on main car, by age, RoI, March 2015
- Car monitoring technology yet to take off among Irish consumers
The Consumer – Current Provider of Car Insurance
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- Key points
- AXA the clear leader in the NI motor insurance market
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- Figure 33: Current provider of car insurance on main vehicle owned, NI, March 2015
- AXA most popular among women, C2DEFs and younger consumers
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- Figure 34: Consumers whose current provider of car insurance on main vehicle is AXA, by age, gender and social class, NI, March 2015
- AXA leads RoI market, but with stronger competition
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- Figure 35: Current provider of car insurance on main vehicle owned, RoI, March 2015
- As in NI, AXA strongest in RoI among women, C2DEFs and younger consumers
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- Figure 36: Consumers whose current provider of car insurance on main vehicle is AXA, by age, gender and social class, RoI, March 2015
- Aviva has balanced appeal across demographics in RoI
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- Figure 37: Consumers whose current provider of car insurance on main vehicle is Aviva, by age, gender and social class, RoI, March 2015
- Allianz peaks in popularity among consumers aged 25-34
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- Figure 38: Consumers whose current provider of car insurance on main vehicle is Allianz, by age, gender and social class, RoI, March 2015
- RSA the popular choice for ABC1 males
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- Figure 39: Consumers whose current provider of car insurance on main vehicle is RSA, by age, gender and social class, RoI, March 2015
The Consumer – Methods of Purchasing Car Insurance
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- Key points
- More than four in 10 motor policies arranged online
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- Figure 40: Method used to purchase the current insurance policy for main vehicle, NI and RoI, March 2015
- ABC1s and men most inclined to buy online direct from the insurer
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- Figure 41: Consumers who purchased their current insurance policy for their main vehicle directly through their insurance provider online, by gender, age and social class, RoI and NI, March 2015
- Price comparison websites more mainstream in NI than in RoI
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- Figure 42: Consumers who purchased their current insurance policy for their main vehicle online through a price comparison website, by gender, age and social class, RoI and NI, March 2015
- Consumers aged 45-54 and C2FEFs most likely to purchase in person
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- Figure 43: Consumers who purchased their current insurance policy for their main vehicle face to face/in a branch, by gender, age and social class, RoI, March 2015
- Over-55s, women and C2DEFs most inclined to purchase by phone
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- Figure 44: Consumers who purchased their current insurance policy for their main vehicle directly over the phone, by gender, age and social class, RoI and NI, March 2015
The Consumer – Renewal Behaviour
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- Key points
- Over three quarters of consumers shopped around at last renewal
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- Figure 45: Motor insurance renewal behaviour, NI and RoI, March 2015
- Younger consumers most likely to have switched provider
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- Figure 46: Consumers who switched to a different insurer at last renewal, by age and gender, NI and RoI, March 2015
- Having shopped around or not, most stay with existing insurer
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- Figure 47: Consumers who stayed with their insurer and didn't shop around at last renewal, by gender and social class, NI and RoI, March 2015
The Consumer – Attitudes towards Motor Insurance
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- Key points
- Cost of insurance weighs heavily on consumers' minds
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- Figure 48: Agreement with statements relating to car insurance and car insurers, NI and RoI, March 2015
- Majority want input into the composition of their cover
- No real loyalty to traditional insurers evident among Irish motorists
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- Figure 49: Agreement with the statement 'I would be willing to take out insurance with a non-traditional provider (eg supermarket/post office) in the future’, by age, gender and social class, RoI and NI, March 2015
- Half of all motorists would prefer to deal with a locally based insurer
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- Figure 50: Agreement with statement 'I would prefer to deal with an insurer with a branch based in my local area', by age, gender and social class, NI and RoI, March 2015
- Importance of insurance broadly recognised by Irish motorists
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- Figure 51: Agreement with the statement 'I would not choose to purchase car insurance if it was not a legal requirement', by age, gender and social class, NI and RoI, March 2015
- Reputational issues continue to dog the car insurance market
- Lack of trust highest among men and ABC1s
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- Figure 52: Agreement with the statement 'I do not trust car insurance companies to pay out fairly in the event of a claim', by age, gender and social class, NI and RoI, March 2015
- Doubts about value highest among ABC1s and younger consumers
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- Figure 53: Agreement with the statement 'Most car insurance policies provide good value for money', by age, gender and social class, NI and RoI, March 2015
- Only a minority feel that loyalty is rewarded by car insurance providers
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- Figure 54: Agreement with the statement 'Insurance providers adequately reward loyalty (eg lower premiums)', by age, gender and social class, NI and RoI, March 2015
- Drivers more likely to have positive experience with insurers
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- Figure 55: Agreement with statement 'I have had good experience making a car insurance claim’, NI and RoI, March 2015
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- Figure 56: Agreement with statement 'I have had an unsatisfactory experience making a car insurance claim’, NI and RoI, March 2015
Appendix
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- NI Toluna data
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- Figure 57: Type of car insurance consumers currently have on main car, by demographics, NI, March 2015
- Figure 58: Current provider of car insurance on main vehicle owned, by demographics, NI, March 2015
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- Figure 59: Current provider of car insurance on main vehicle owned, by demographics, NI, March 2015 (continued)
- Figure 60: Current provider of car insurance on main vehicle owned, by demographics, NI, March 2015 (continued)
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- Figure 61: Method used to purchase the current insurance policy for main vehicle, by demographics, NI, March 2015
- Figure 62: Method used to purchase the current insurance policy for main vehicle, by demographics, NI, March 2015 (continued)
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- Figure 63: If consumers stayed with their insurer last time they had to renew their policy, by demographics, NI, March 2015
- Figure 64: Agreement with the statement ‘I would not choose to purchase car insurance if it was not a legal requirement’, by demographics, NI, March 2015
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- Figure 65: Agreement with the statement ‘Most car insurance policies provide good value for money’, by demographics, NI, March 2015
- Figure 66: Agreement with the statement ‘The cost of premiums is the most important factor when deciding which car insurance policy to choose’, by demographics, NI, March 2015
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- Figure 67: Agreement with the statement ‘I do not trust car insurance companies to pay out fairly in the event of a claim’, by demographics, NI, March 2015
- Figure 68: Agreement with the statement ‘I would prefer to have the flexibility to choose from a range of cover options (eg policies, ‘add-ons’ etc) rather than policies designed specifically by insurers’, by demographics, NI, March 2015
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- Figure 69: Agreement with the statement ‘I have had an unsatisfactory experience of making a car insurance claim’, by demographics, NI, March 2015
- Figure 70: Agreement with the statement ‘I have had a good experience making a car insurance claim’, by demographics, NI, March 2015
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- Figure 71: Agreement with the statement ‘For small accidents/ damage I would prefer not to make a claim ’, by demographics, NI, March 2015
- Figure 72: Agreement with the statement ‘I would prefer to deal with an insurer with a branch based in my local area’, by demographics, NI, March 2015
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- Figure 73: Agreement with the statement ‘I would be willing to take out insurance for a longer period of time (eg 18-month policy) if the cost was lower’, by demographics, NI, March 2015
- Figure 74: Agreement with the statement ‘I would be willing to take out my insurance with a non-traditional provider (eg supermarket/ post office) in the future’, by demographics, NI, March 2015
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- Figure 75: Agreement with the statement ‘Insurance providers adequately reward loyalty (eg lower premiums)’, by demographics, NI, March 2015
- Figure 76: Agreement with the statement ‘I would like clearer information on what will affect my premium’, by demographics, NI, March 2015
- RoI Toluna data
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- Figure 77: Type of car insurance consumers currently have on main car, by demographics, RoI, March 2015
- Figure 78: Current provider of car insurance on main vehicle owned, by demographics, RoI, March 2015
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- Figure 79: Current provider of car insurance on main vehicle owned, by demographics, RoI, March 2015 (continued)
- Figure 80: Current provider of car insurance on main vehicle owned, by demographics, RoI, March 2015 (continued)
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- Figure 81: Method used to purchase the current insurance policy for main vehicle, by demographics, RoI, March 2015
- Figure 82: Method used to purchase the current insurance policy for main vehicle, by demographics, RoI, March 2015 (continued)
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- Figure 83: If consumers stayed with their insurer last time they had to renew their policy, by demographics, RoI, March 2015
- Figure 84: Agreement with the statement ‘I would not choose to purchase car insurance if it was not a legal requirement’, by demographics, RoI, March 2015
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- Figure 85: Agreement with the statement ‘Most car insurance policies provide good value for money’, by demographics, RoI, March 2015
- Figure 86: Agreement with the statement ‘The cost of premiums is the most important factor when deciding which car insurance policy to choose’, by demographics, RoI, March 2015
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- Figure 87: Agreement with the statement ‘I do not trust car insurance companies to pay out fairly in the event of a claim’, by demographics, RoI, March 2015
- Figure 88: Agreement with the statement ‘I would prefer to have the flexibility to choose from a range of cover options (eg policies, ‘add-ons’ etc) rather than policies designed specifically by insurers’, by demographics, RoI, March 2015
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- Figure 89: Agreement with the statement ‘I have had an unsatisfactory experience of making a car insurance claim’, by demographics, RoI, March 2015
- Figure 90: Agreement with the statement ‘I have had a good experience making a car insurance claim’, by demographics, RoI, March 2015
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- Figure 91: Agreement with the statement ‘For small accidents/damage I would prefer not to make a claim’, by demographics, RoI, March 2015
- Figure 92: Agreement with the statement ‘I would prefer to deal with an insurer with a branch based in my local area’, by demographics, RoI, March 2015
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- Figure 93: Agreement with the statement ‘I would be willing to take out insurance for a longer period of time (eg 18-month policy) if the cost was lower’, by demographics, RoI, March 2015
- Figure 94: Agreement with the statement ‘I would be willing to take out my insurance with a non-traditional provider (eg supermarket/post office) in the future’, by demographics, RoI, March 2015
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- Figure 95: Agreement with the statement ‘Insurance providers adequately reward loyalty (eg lower premiums)’, by demographics, RoI, March 2015
- Figure 96: Agreement with the statement ‘I would like clearer information on what will affect my premium’, by demographics, RoI, March 2015
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