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, €m, NI and RoI, 2011-16
- Forecast
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- Figure 2: Index of gross written premiums, private motor insurance, NI and RoI, 2010-20
- Market factors
- Car insurance premiums skyrocketed by 50% in two years in RoI
- NI car insurance premiums increased by over 20% in 2015
- Doubts as to whether consumers can afford higher premiums
- More cars on Irish roads means a bigger car insurance market
- Companies, brands and innovations
- The consumer
- Irish car insurance sector dominated by fully comprehensive cover
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- Figure 3: Types of car insurance currently owned by consumers, NI and RoI, April 2016
- AXA the market leader both in NI and RoI
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- Figure 4: Provider of car insurance for main car, NI, January 2016
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- Figure 5: Provider of car insurance for main car, RoI, January 2016
- Around half of all policies arranged online, a third over the phone
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- Figure 6: Method used by consumers the last time they renewed their car insurance policy, NI and RoI, January 2016
- Most Irish motorists shop around when it is time to renew
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- Figure 7: Switching behaviour of consumers during their last car insurance renewal period, January 2016
- Small number of commonly-owned add-ons favoured by Irish policyholders
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- Figure 8: Consumers who already have or would be interested in selected features as a car insurance policy ‘add-on’, NI and RoI, January 2016
- What it means
Issues and Insights
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- Increased premiums could result in increased switching
- The facts
- The implications
- Potential demand among consumers for build-your-own policies
- The facts
- The implications
- Increased premiums could result in compromised quality of cover
- The facts
- The implications
The Market – What You Need to Know
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- Car insurance premiums skyrocketed by 50% in two years in RoI
- NI car insurance premiums increased by over 20% in 2015
- Doubts as to whether consumers can afford higher premiums
- More cars on Irish roads means a bigger car insurance market
Market Size and Forecast
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- Gross written premiums in 2016 set to exceed €1.5 billion
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- Figure 9: Gross written premiums, private motor insurance, IoI, NI and RoI, 2010-20
- Both markets in middle of steady year-on-year growth period
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- Figure 10: Index of gross written premiums, private motor insurance, NI and RoI, 2010-20
Market Drivers
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- RoI car insurance premiums up more than 50% in two years
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- Figure 11: Consumer Price Index, motor insurance, Index, RoI, March 2014-March 2016
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- Figure 12: Consumer Price Index, motor insurance, annual % increase, RoI, March 2014-March 2016
- Premium increases due in part to unsustainable underwriting losses
- Court awards, legal costs and fraud also contributing to upward pressure on prices
- Injuries Board not functioning as intended in RoI
- UK (incl. NI) motor insurance premiums up by more than 20% in 2015
- Bogus motor claims one factor in rising premiums – but reform imminent
- Young drivers in the UK (including NI) paying twice the average for motor insurance
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- Figure 13: Average car insurance premiums, by age, UK (including NI), £, Q4 2015
- NI car insurance premiums among the highest in the UK
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- Figure 14: Average car insurance premiums, by region, UK (including NI), £, Q4 2015
- Figure 15: Average car insurance premiums, % quarterly increase, by region, UK (including NI), Q4 2015
- Limited capacity among consumers to absorb higher premiums
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- Figure 16: How consumers rate their current financial situation, NI and RoI, April 2016
- Almost 1.1 million vehicles on NI roads in 2014
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- Figure 17: Licensed vehicle stock, 000s, NI, 2004-14
- Figure 18: Reported injury road traffic collisions in NI, 2006-15
- More than three quarters of NI households have access to vehicle
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- Figure 19: Households with access to at least one car/van, %, NI and England, 2011-15
- Almost 2 million private cars on RoI roads in 2014
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- Figure 20: Number of private cars, million, RoI, 2004-14
- Figure 21: New and second-hand private cars licensed for the first time, RoI, 2003-15
Companies and Brands – What You Need to Know
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- Insurance companies tap into black box revelation
- Insurance companies unite to regulate autonomous cars
- XS direct re-enters Irish motor insurance market
- Hughes insurance invests £1 billion in e-commerce platform
- Allianz no longer insures cars aged 15 year and over
- One Direct is rebranded to Postal Insurance
Companies and Brands
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- Admiral Group
- Key facts
- Motor insurance products
- Recent developments
- Allianz Group Plc
- Key facts
- Motor insurance products
- Recent developments
- AXA
- Key facts
- Motor insurance products
- Recent developments
- An Post (Post Insurance)
- Key facts
- Motor insurance products
- Recent developments
- Direct Line Group
- Key facts
- Motor insurance products
- Recent developments
- FBD
- Key facts
- Motor insurance products
- Recent developments
- Liberty Insurance (including Hughes Insurance)
- Key facts
- Motor insurance products
- Recent developments
- RSA Insurance Ireland
- Key facts
- Motor insurance products
- Recent developments
- Open + Direct Insurance
- Key facts
- Motor insurance products
- Recent developments
- Zurich
- Key facts
- Motor insurance products
- Recent developments
- Tesco Bank
- Key facts
- Motor insurance products
- Recent developments
- M&S Bank
- Key facts
- Motor insurance products
- Recent developments
- Allied Irish Bank
- Key facts
- Motor insurance products
- Bank of Ireland
- Key facts
- Motor insurance products
- Recent developments
- Ulsterbank
- Key facts
- Motor insurance products
- Recent developments
The Consumer – What You Need to Know
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- Irish car insurance sector dominated by fully comprehensive cover
- AXA the market leader both in NI and RoI
- Around half of all policies arranged online, a third over the phone
- Most Irish motorists shop around when it is time to renew
- Small number of commonly-owned add-ons favoured by Irish policyholders
The Consumer – Type of Car Insurance Owned
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- Fully comprehensive cover dominates market in NI and RoI
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- Figure 22: Types of car insurance currently owned by consumers, NI and RoI, January 2016
- Ownership of fully comprehensive cover highest among 25+
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- Figure 23: Consumers who have fully comprehensive car insurance, by age, NI and RoI, January 2016
- Third party policies most popular among C2DEFs and 18-44s
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- Figure 24: Ownership of third party and third party fire and theft insurance, RoI, January 2016
- Little interest among consumers in black box technology (telematics)
The Consumer – Car Insurance Providers
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- AXA dominant provider in NI car insurance market
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- Figure 25: Provider of car insurance for main car, NI, January 2016
- AXA particularly popular among women, 25-34s and C2DEFs
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- Figure 26: Consumers who obtained insurance for main car from AXA, by gender, age and social class, NI, January 2016
- AXA leading RoI market – but with stronger competition than in NI
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- Figure 27: Provider of car insurance for main car, RoI, January 2016
- AXA particularly popular among 25-34s and C2DEFs
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- Figure 28: Consumers who obtained insurance for main car from AXA, by gender, age and social class, RoI, January 2016
- Aviva strongly positioned among motorists aged 55+
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- Figure 29: Consumers who obtained insurance for main car from Aviva, by gender, age and social class, RoI, January 2016
- Allianz appealing strongest to motorists aged 35-44
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- Figure 30: Consumers who obtained insurance for main car from Allianz, by gender, age and social class, RoI, January 2016
- RSA more popular among motorists aged 55+
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- Figure 31: Consumers who obtained insurance for main car from RSA, by gender, age and social class, RoI, January 2016
The Consumer – Methods of Renewal
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- Approaching half of all policies now arranged online
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- Figure 32: Method used by consumers the last time they renewed their car insurance policy, NI and RoI, January 2016
- Older consumers more inclined to renew cover over the phone
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- Figure 33: Consumers who renewed their last car insurance policy over the phone, NI and RoI, January 2016
- Motorists aged 35-44 renewing via insurer’s own website
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- Figure 34: Consumers who renewed their last car insurance policy online directly through the insurance provider, NI and RoI, January 2016
- Younger drivers and ABC1s in NI using price comparison websites
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- Figure 35: Consumers who renewed their last car insurance policy online – through a price comparison website, NI and RoI, January 2016
- Majority of motorists shop around at renewal time
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- Figure 36: Switching behaviour of consumers during their last car insurance renewal period, January 2016
- Around a fifth renew with existing insurer without shopping around
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- Figure 37: Consumers who ‘stayed and didn’t shop around’ during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
- Around half of all motorists shopped around – but then stayed
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- Figure 38: Consumers who ‘stayed but only after shopping around’ during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
- More than 1 in 4 switched insurer at last renewal period
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- Figure 39: Consumers who switched to a different insurer during their last car insurance renewal period, by gender, age and social class, NI and RoI, January 2016
The Consumer – Add-ons to Car Insurance Policies
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- High-level ownership of most commonly-held add-ons
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- Figure 40: Consumers who already have or would be interested in selected features as a car insurance policy ‘add-on’, NI and RoI, January 2016
- Relatively strong potential market for certain add-ons
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- Figure 41: Selected features as car insurance policy ‘add-ons’ that consumers do not have but are interested in and would be willing to pay more for, NI and RoI, January 2016
- Some add-ons unlikely to move beyond niche appeal
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- Figure 42: Selected features as car insurance policy ‘add-ons’ that consumers do not have and are not interested in, NI and RoI, January 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Market size rationale
- Definitions
- Abbreviations
Appendix – The Consumer
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- NI Toluna data
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- Figure 43: Types of car insurance currently used by consumers, by demographics, NI, January 2016
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- Figure 44: Provider of car insurance for main car, by demographics, NI, January 2016
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- Figure 45: Provider of car insurance for main car, by demographics, NI, January 2016 (continued)
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- Figure 46: Provider of car insurance for main car, by demographics, NI, January 2016 (continued)
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- Figure 47: Method used by consumers the last time they renewed their car insurance policy, by demographics, NI, January 2016
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- Figure 48: Method used by consumers the last time they renewed their car insurance policy, by demographics, NI, January 2016 (continued)
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- Figure 49: Switching behaviour of consumers during their last car insurance renewal period, by demographics, NI, January 2016
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- Figure 50: Consumers who already have or would be interested in windscreen cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 51: Consumers who already have or would be interested in protected no-claims bonus as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 52: Consumers who already have or would be interested in legal protection as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 53: Consumers who already have or would be interested in courtesy car as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 54: Consumers who already have or would be interested in breakdown cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 55: Consumers who already have or would be interested in increased personal accident cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 56: Consumers who already have or would be interested in European/overseas cover as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 57: Consumers who already have or would be interested in key insurance as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 58: Consumers who already have or would be interested in insurance for car contents (eg multimedia devices)as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 59: Consumers who already have or would be interested in gadget insurance (eg phone) as a car insurance policy ‘add-on’, by demographics, NI, January 2016
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- Figure 60: Consumers who already have or would be interested in camera/recording equipment for car as a car insurance policy ‘add-on’, by demographics, NI, January 2016
- RoI Toluna data
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- Figure 61: Types of car insurance currently used by consumers, by demographics, RoI, January 2016
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- Figure 62: Provider of car insurance for main car, by demographics, RoI, January 2016
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- Figure 63: Provider of car insurance for main car, by demographics, RoI, January 2016 (continued)
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- Figure 64: Provider of car insurance for main car, by demographics, RoI, January 2016 (continued)
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- Figure 65: Method used by consumers the last time they renewed their car insurance policy, by demographics, RoI, January 2016
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- Figure 66: Method used by consumers the last time they renewed their car insurance policy, by demographics, RoI, January 2016 (continued)
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- Figure 67: Switching behaviour of consumers during their last car insurance renewal period, by demographics, RoI, January 2016
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- Figure 68: Consumers who already have or would be interested in windscreen cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 69: Consumers who already have or would be interested in protected no-claims bonus as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 70: Consumers who already have or would be interested in legal protection as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 71: Consumers who already have or would be interested in courtesy car as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 72: Consumers who already have or would be interested in breakdown cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 73: Consumers who already have or would be interested in increased personal accident cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 74: Consumers who already have or would be interested in European/overseas cover as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 75: Consumers who already have or would be interested in key insurance as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 76: Consumers who already have or would be interested in insurance for car contents (eg multimedia devices) as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 77: Consumers who already have or would be interested in gadget insurance (eg phone) as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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- Figure 78: Consumers who already have or would be interested in camera/recording equipment for car as a car insurance policy ‘add-on’, by demographics, RoI, January 2016
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