Insurance is unlike most other markets when it comes to customer engagement. Consumers do not want to use the product or think about it unless it is time to renew and even a successful claim tends to be in the context of a negative experience. When trying to introduce new features or offerings, insurers face consumers’ resistance to even consider the scenario where they might end up needing insurance. As such, it is hard for a brand to innovate, to get people excited, to differentiate itself.

The industry remains competitive but is too focused on price and experiences high levels of customer churn. This current state of affairs tends to leave out important aspects of value-based propositions, and risks limiting the appeal of innovations that can’t be compared on a like-for-like basis. Technological developments and original approaches to insurance have multiplied in recent years, but remain niche and are yet to significantly shake up the industry. Partnerships between traditional insurers and start-ups will become more common. This benefits the former by allowing the integration of innovative features without the need to develop them themselves, and the latter in terms of improving visibility, trust and access to a wider audience. Reaching the under-served and striving to please a minority that values tech-based developments above other aspects will continue to play a factor driving transformation. However, effective overall innovation needs to start at the beginning: simplifying existing channels and processes, and rewarding loyalty.

This is a consumer research Report, providing an overview of the UK personal lines general insurance market. It focuses on the latest developments and innovations in the sector, exploring what insurers can do to stand out from the crowd, attract customers and improve engagement and loyalty.

Mintel’s exclusive consumer research measures product ownership of the main lines of personal insurance. It assesses customers’ satisfaction and the different steps of the customer journey, from application through payment to claims process. The Report also explores attitudes towards insurance in general, including engagement and loyalty, interest in innovations and different customer service channels. It looks to establish the kind of features that are most likely to make a customer choose an insurance provider over its competitors.

For the purposes of this Report, Mintel has used the following definitions:

General insurance is insurance that covers (non-life) risks for a limited period, typically one year.

The main sectors are:

Motor – Motor policies cover the legal liabilities arising from the use of a motor vehicle, such as a private car or motorcycle. Comprehensive policies additionally cover damage to the vehicle (see Motor Insurance – UK, March 2018 for more information).

Household – Household policies cover specified property that may be damaged or destroyed by events or perils such as fire, storm, subsidence or theft (see Home Insurance – UK, December 2018 for more information).

Accident and health – Comprises two main types of business: personal accident and medical expenses. Personal accident policies will pay a lump sum or weekly benefits in the event of accidental death or a specified injury. PMI (Private medical insurance) will pay the costs of medical treatment for acute conditions (see Consumers and Health Insurance (PMI and HCPs) – UK, October 2018 for more information).

Pecuniary loss – Relates to financial losses that may have occurred, includes travel insurance (Travel Insurance – UK, February 2018), pet insurance (Pet Insurance – UK, August 2018), legal expenses, etc.

Other lines – includes extended warranties and mobile phone and gadget insurance (see Consumers and Gadget Insurance – UK, November 2018).

Also relevant for this Report:

Protection products – cover a person or their dependents should they lose their ability to earn an income. The largest sectors are term assurance (Term Assurance – UK, June 2018) and whole-of-life insurance (Whole-of-Life Insurance – UK, July 2018).

General liability – covers third-party injury or damage claims. Includes public and product liability and employers’ liability.