Table of Contents
Executive Summary
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- The market
- General insurance GWP up by 6% in 2017
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- Figure 1: Total UK general insurance market (Direct – UK risks), by gross written premiums, 2013-17
- Direct channels offer opportunity to enhance customer relationship
- Price comparison sites and innovation: a circular reference
- InsurTech and banking marketplaces
- GDPR and Open Banking come into force
- FCA calls for innovation to improve access to insurance
- Companies and brands
- InsurTech players in the FCA’s sandbox
- Comparison sites look to differentiate themselves
- Digital-only banking apps incorporate innovative insurance
- Multiple-product insurance that simplifies admin
- Keeping up with consumer trends
- The consumer
- 88% of people have at least one insurance product
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- Figure 2: Insurance product ownership, October 2018
- Satisfaction declines as customer journey progresses
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- Figure 3: Satisfaction with selected insurance activities, October 2018
- Lack of engagement remains a challenge
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- Figure 4: Attitudes towards insurance, October 2018
- A combination of basic but useful channels attracts the majority
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- Figure 5: Channel and contact preferences in insurance, October 2018
- Consumers are most interested in being rewarded for their loyalty
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- Figure 6: Interest in insurance rewards and extras, October 2018
- What we think
Issues and Insights
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- Innovation: a means to an end
- The facts
- The implications
- Mobile apps have limited appeal
- The facts
- The implications
- Rewarding loyalty: the ultimate innovation
- The facts
- The implications
The Market – What You Need to Know
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- General insurance GWP up by 6% in 2017, with variation in distribution channels by sector
- Price comparison sites and innovation: a circular reference
- InsurTech and banking marketplaces
- GDPR and Open Banking come into force
- FCA calls for innovation to improve access to insurance
Market Context
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- Value of general insurance premiums grew by £2.8 billion in 2017
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- Figure 7: Total UK general insurance market (Direct – UK risks), by gross written premiums, 2013-17
- Personal business accounts for almost two thirds of the market
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- Figure 8: Breakdown of the UK general insurance gross written premiums, by type of business, 2017
Insurance Distribution Channels
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- 80% of business written either directly or through brokers…
- …but there are significant differences by sector
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- Figure 9: Distribution channels in personal general insurance, by risk, 2017
- Price comparison sites are key to the insurance market
- More than just a number
- The more the merrier
- Amazon: is a giant about to enter the PCW jungle?
- InsurTech and banking marketplaces
Regulatory and Legislative Changes
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- GDPR and Open Banking come into force
- FCA calls for innovation to improve access to insurance
- FCA to measure value of add-ons
- BIBA manifesto calls for HM Treasury to remove IPT from telematics policies
Companies and Brands – What You Need to Know
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- InsurTech players in the FCA’s sandbox
- Reverse-auction marketplace challenge to PCWs
- Digital-only banking apps incorporate innovative insurance
- Multiple-product insurance that simplifies admin
- Keeping up with consumer trends
- General insurance adspend increases by 12%
Launch Activity and Innovation
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- InsurTech players in the FCA’s sandbox
- Laka: crowd-based cycle insurance
- Pluto: chatbot insurance through Facebook Messenger
- YouToggle: app telematics
- Comparison sites look to differentiate themselves
- Two new specialised PCWs
- Making ‘quick quotes’ more accurate
- honcho’s reverse-auction marketplace
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- Figure 10: honcho’s reverse marketplace
- Digital-only banking apps incorporate innovative insurance
- Multiple-product insurance
- Wrisk’s ‘macroinsurance’
- Back Me Up: flat monthly fee, no annual contract
- Insurance in the age of social media…
- …and the gig and sharing economies
- Channels and Developments
- The manufacturer’s role in car, contents and gadget insurance
- Case study: Trōv’s partnership with Waymo
Advertising and Marketing Activity
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- General insurance adspend increases by 12%
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- Figure 11: Total above-the-line, online display and direct mail advertising expenditure on general insurance, 2013/14-2017/18*
- Top 10 advertisers account for 54% of adspend in 2017/18
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- Figure 12: Top 20 brands for above-the-line, online display and direct mail advertising expenditure on general insurance, 2015/16-2017/18*
- TV accounts for almost half of all ATL adspend
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- Figure 13: Total above-the-line, online display and direct mail advertising expenditure on general insurance, by media type, 2016/17 and 2017/18*
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 88% of people have at least one insurance product
- Satisfaction declines as the customer journey progresses
- Lack of engagement remains a challenge
- A combination of basic but useful channels attracts the majority
- Consumers most interested in being rewarded for their loyalty
Product Ownership
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- Motor and home policies are the most widely owned insurance products
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- Figure 14: Insurance product ownership, October 2018
- Multiple ownership increases with age
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- Figure 15: Repertoire of insurance product ownership, by generation, October 2018
- Open Banking can simplify buying and managing insurance
Satisfaction with Insurance Customer Journey
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- Satisfaction varies by step of the customer journey…
- …and is more likely to drop as the relationship progresses
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- Figure 16: Satisfaction with selected insurance activities, October 2018
- Overall levels of satisfaction with insurance are high…
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- Figure 17: Overall satisfaction with most recently arranged insurance policy, October 2018
- …but certain aspects of the customer journey have a much higher impact
- Consumers need to feel they’ve got a good deal
- High expectations, higher standards
- Room for improvement
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- Figure 18: Key drivers of overall satisfaction with insurance, October 2018
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- Figure 19: Overall satisfaction with insurance – key driver output, October 2018
Attitudes towards Insurance
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- Back to basics
- Lack of engagement could make it easier for disruptors
- T&Cs apply
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- Figure 20: Attitudes towards insurance, October 2018
- Identifying those willing to connect smart tech and insurance
- Insurers starting to incorporate new technology
- Target demographic for insurance-related smart technology is identified
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- Figure 21: Attitudes towards insurance – CHAID – Tree output, October 2018
Channel and Contact Preferences
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- Mobile apps: not an asset but a liability?
- Online access is taken for granted
- UK-based call centres are a must
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- Figure 22: Channel and contact preferences in insurance, October 2018
- A combination of basic but useful channels attracts the majority
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- Figure 23: TURF Analysis – interest in customer service channels in insurance, October 2018
Interest in Insurance Rewards and Extras
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- Consumers most interested in being rewarded for their loyalty…
- …but are still on the lookout for introductory offers
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- Figure 24: Interest in insurance rewards and extras, October 2018
- Extras remain extra
- Insurers as a source of guidance or expertise have limited appeal
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- Figure 25: Interest in insurance innovations, by rank, October 2018
- Interest in discounted or free smart devices is highest among parents
- Ongoing rewards can take many shapes and forms
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Key driver analysis methodology
- Interpretation of results
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- Figure 26: Overall satisfaction with insurance – key driver output, October 2018
- Figure 27: Satisfaction with insurance, October 2018
- CHAID analysis methodology
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- Figure 28: Attitudes towards insurance – CHAID – Table output, October 2018
- TURF analysis methodology
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- Figure 29: Table – TURF Analysis – interest in customer service channels in insurance, October 2018
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