"There is an issue for direct providers to address as only 8% of the sample say they would consider buying directly by telephone in the future and only 5% would consider buying by post."

Extract from this report

Competitive pricing and the existence of alternative purchasing channels have changed the nature of the traditional mortgage lender/insurer relationship. New means of distribution as well as media coverage are helping to inform the public of their choices when purchasing property insurance. Home Insurance inspects such recent developments in the UK sector.

With price becoming increasingly important in the home insurance sector, this report reviews the UK market for domestic buildings and household contents insurance. Home Insurance considers the influx of new players and their struggle against established providers exploring differing types of cover, claims and risk management, while profiling the key companies. The report also contemplates technological impact on the sector as well as looking at new niche market opportunities.

Consumers traditionally purchase through a mortgage lender or building society, some include compulsory insurance, or as a condition of securing a loan initially, otherwise the consumer is free to choose, shop around for the cheapest price. With rising adult PDI averaging nearly £13,000 pa, how can the contents and building insurance markets capitalise? Home Insurance reads the small print and examines the clauses.

There is 63% market penetration of buildings insurance, yet 66% of contents insurance. Home Insurance breaks the data down further and analyses who the customer is, examining consumer habits and attitudes to purchasing household insurance. A representative sample of nearly 2,000 adults were interviewed by NOP about how and why they acquired their home insurance cover. This report identifies policy ownership level and customer loyalty, examining the chosen means and medium of purchase; whether by telephoning the provider direct or through an existing broker.

With the number of households expected to increase in the future, the insurance industry has to recognise the particular needs of individual household types and develop product offering that satisfies each niche but also accommodates possible change. Home Insurance addresses such questions forecasting the market ahead to 2006.