Table of Contents
Overview
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- What you need to know
- Issues covered in this Report
- Definitions
Executive Summary
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- The market
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- Figure 1: Gross written premiums, private motor insurance, €m, IoI, RoI and NI, 2013-18
- Forecast
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- Figure 2: Indexed gross written premiums, private motor insurance index, RoI and NI, 2013-22
- Market factors
- Motor insurance premiums down in UK overall, but up in NI
- Premiums in RoI down significantly 2017-18, but still historically high
- Broad optimism among NI and, especially, RoI consumers
- Over a quarter of Irish consumers could absorb higher premiums
- Companies and Brands
- The consumer
- 99% of motorists have car insurance, just 1% do not
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- Figure 3: Ownership of car insurance, NI and RoI, January 2018
- AXA the market leader both in NI and RoI car insurance markets
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- Figure 4: Insurance providers that motorists currently have car insurance with, NI, January 2018
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- Figure 5: Insurance providers that motorists currently have car insurance with, RoI, January 2018
- Online via insurer now the single-most popular channel
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- Figure 6: Method used to purchase current car insurance policy, RoI and NI, January 2018
- Most policyholders shopped around at their last renewal date
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- Figure 7: Consumers and renewal behaviour, RoI and NI, January 2018
- Willingness from consumers to act to reduce premiums
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- Figure 8: Agreement with statements relating to car insurance and car insurance providers, RoI and NI, January 2018
- What it means
The Market – What You Need to Know
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- Motor insurance premiums up in NI, but down overall in UK
- RoI premiums falling, but remain high by historical standards
- Irish consumers are broadly positive about future situation
- Just over a quarter of Irish consumers could absorb higher premiums
Market Size and Forecast
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- Value of gross written premiums approaching €2 billion in 2018
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- Figure 9: Gross written premiums, private motor insurance, €m, IoI, RoI and NI, 2013-22
- Market to continue to grow, but at a more moderate pace
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- Figure 10: Gross written premiums, private motor insurance index, RoI and NI, 2013-22
- Gross written premiums for car insurance up 25% in 2016
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- Figure 11: Gross written premiums, all insurance types, € million, RoI, 2016
- Irish consumers spending over $4,000 yearly on insurance premiums
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- Figure 12: Insurance premiums per capita, $, selected European countries, 2016
Market Drivers
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- Insurance costs down overall in UK, but increasing in NI
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- Figure 13: Average motor insurance premiums, quarterly % change, by TV region, UK (including NI), Q1 2018
- Average motor premium in NI now in excess of £850 per annum
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- Figure 14: Average motor insurance premiums, by TV region, UK (including NI), Q1 2018
- Figure 15: Average motor insurance premiums, £, UK (including NI), Q3 2014-Q1 2018
- Young motorists in UK paying almost three times average premium
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- Figure 16: Average motor insurance premiums, by age, £, UK (including NI), Q1 2018
- RoI premiums fall significantly, but still high compared to recent years
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- Figure 17: Motor insurance premiums index, RoI, April 2010-April 2018
- Sizeable minority anticipate improvement in personal fortunes
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- Figure 18: Consumers' assessment as to whether own financial situation will improve, stay the same or decline over the coming 12 months, NI and RoI, March 2018
- Just over a quarter could take on higher car insurance premiums
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- Figure 19: How consumers rate their current financial situation, NI and RoI, March 2018
- Three quarters of Irish consumers currently own a car
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- Figure 20: Ownership of a car, RoI and NI, January 2018
- Figure 21: Reason for not owning a car, RoI and NI, January 2018
- Less than a quarter of consumers driving new or nearly-new cars
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- Figure 22: Type of car ownership, RoI and NI, January 2018
Companies and Brands – What You Need to Know
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- Insurance industry brands in Ireland starting to react to technology
- FBD to underwrite An Post’s Insurance brand, One Direct
- Direct Line partner with Tesla in the UK
- Zurich in negotiations to acquire Dublin-based insurer, Blue Insurance
- Aviva Ireland retains sponsorship of Dublin stadium until 2025
Companies and Brands
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- Admiral (NI Only)
- Key facts
- Motor insurance products
- Recent developments
- Allianz Ireland
- Key facts
- Motor insurance products
- Recent developments
- AXA
- Key facts
- Motor insurance products
- Recent developments
- Direct Line Group (NI Only)
- Key facts
- Motor insurance products
- Recent developments
- An Post (RoI Only)
- Key facts
- Motor insurance products
- FBD (RoI Only)
- Key facts
- Motor insurance products
- Recent developments
- Liberty Insurance (Hughes Insurance in NI)
- Key facts
- Motor insurance products
- Recent developments
- Abbey Insurance Brokers (NI Only)
- Key facts
- Motor insurance products
- Zurich
- Key facts
- Motor insurance products
- Recent developments
- 123.ie (RSA Insurance Ireland)
- Key facts
- Motor insurance products
- Allied Irish Bank
- Key facts
- Motor insurance products
- Bank of Ireland
- Key facts
- Motor insurance products
- Ulster Bank
- Key facts
- Motor insurance products
- Aviva
- Key facts
- Motor insurance products
- Recent developments
Who’s Innovating?
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- Big data impacts the industry as consumers seek more ‘on-demand’ products
- Cuvva
- By Miles
- Internet of Things interacting with telematics to improve insurance products
- New apps seeking to invert the insurance price comparison model
- Honcho
- Wrisk
The Consumer – What You Need to Know
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- Overwhelming majority of motorists have car insurance
- AXA the market leader both in NI and RoI car insurance markets
- Online via insurer now the single-most popular channel
- Around three quarters of consumers shopped around at renewal
- Initiatives to reduce premiums interesting consumers
Ownership of Car Ownership
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- Majority of motorists have a fully comprehensive policy
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- Figure 23: Ownership of car insurance, NI and RoI, January 2018
- Ownership of fully comprehensive cover lowest among younger drivers
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- Figure 24: Ownership of fully comprehensive car insurance, by gender, age and social class, NI and RoI, January 2018
- 1 in 4 motorists aged 18-44 in RoI have third party or TPFT cover
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- Figure 25: Ownership of third party / third party, fire & theft cover, by gender, age and social class, RoI, January 2018
Current Provider
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- AXA the clear leader in NI car insurance market
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- Figure 26: Insurance providers that motorists currently have car insurance with, NI, January 2018
- AXA appeals in particular to younger motorists in NI
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- Figure 27: Consumers who currently have car insurance with AXA, by gender and age, NI, January 2018
- Three major players in the RoI car insurance market
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- Figure 28: Insurance providers that motorists currently have car insurance with, RoI, January 2018
- AXA in RoI strongest among consumers aged 25-34
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- Figure 29: Consumers who currently have car insurance with AXA, RoI, January 2018
- Aviva faring well among motorists aged 18-24 and 55+ in RoI
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- Figure 30: Consumers who currently have car insurance with Aviva, RoI, January 2018
- Allianz appeals more to men than women, and 18-24s and 45-54s
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- Figure 31: Consumers who currently have car insurance with Allianz Group, RoI, January 2018
Purchasing Process
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- Online the dominant channel for purchasing car insurance
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- Figure 32: Method used to purchase current car insurance policy, RoI and NI, January 2018
- Shift away from phone towards greater online use both in NI and RoI
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- Figure 33: Main methods used to purchase current car insurance policy, NI, 2016 and 2018
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- Figure 34: Main methods used to purchase current car insurance policy, RoI, 2016 and 2018
- Strong tendency across all demographics to purchase online via provider
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- Figure 35: Consumers who purchased their current car insurance policy online - directly through the insurance provider, RoI and NI, January 2018
- Women and older consumers most inclined to purchase via the phone
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- Figure 36: Consumers who purchased their current car insurance policy over the phone, RoI and NI, January 2018
- Younger consumers, heavy internet users using price comparison sites
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- Figure 37: Consumers who purchased their current car insurance policy online - through a price comparison website, NI, January 2018
- C2DEFs and light internet users’ slight preference to deal face-to-face
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- Figure 38: Consumers who purchased their current car insurance policy face to face/in a branch, RoI, January 2018
Renewal Behaviour
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- Three quarters shopped around at their last renewal date
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- Figure 39: Consumers and renewal behaviour, RoI and NI, January 2018
- Younger consumers renewing without even shopping around
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- Figure 40: Consumers who stayed with their existing insurer and did not shop around at their last renewal, by gender and age, RoI and NI, January 2018
- Men and consumers aged 45-54 shopping around, but staying
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- Figure 41: Consumers who stayed with their existing insurer but only after shopping around at their last renewal, by gender and age, RoI and NI, January 2018
- Women and consumers aged 25+ most inclined to switch insurers
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- Figure 42: Consumers who switched to a different insurer at their last renewal, RoI and NI, January 2018
Attitudes Towards Car Insurance
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- Consumers willing to work with insurers to reduce premiums
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- Figure 43: Agreement with statements relating to car insurance and car insurance providers, RoI and NI, January 2018
- Satisfaction with premiums far higher among NI policyholders
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- Figure 44: Agreement with statement, 'I am happy with the current cost of my car insurance', RoI and NI, January 2018
- Two thirds of consumers used more than one price comparison site
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- Figure 45: Agreement with statement, 'I use more than one price comparison site to get the best car insurance deal', RoI and NI, January 2018
- New technologies to have major implications for insurers and premiums
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- Figure 46: Agreement with statements relating to car insurance and technology, RoI and NI, January 2018
- Consumers largely trust insurers, but reluctant to claim
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- Figure 47: Agreement with statements relating to car insurance and claims, RoI and NI, January 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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