What you need to know
Consumers are often wary about buying insurance as most people get back less than they pay in and it can be difficult to put a value on peace of mind. Many consumers find it difficult to know what level of cover they will need, making it hard to compare the relative value of various policies. Additionally, there is widespread cynicism about the industry with more than half of people thinking that insurance companies always try to get out of paying a claim.
As a result, the market is intensely price-driven as the topline cost is a metric that is more easily comparable. However, a super-complaint by Citizens Advice and an investigation into pricing practices by the FCA have highlighted the way the sector doesn’t always operate in the best interests of customers, leading many across the industry to rethink pricing structures and the way offers are used.
Meanwhile, technology is poised to transform the sector as innovations and ideas that remained niche until relatively recently are increasingly being tested and rolled out by some of the biggest players in the sector. Today, the pressure to build a model that works in the interest of consumers, allied to rapid growth in technology, is poised to transform the way consumers look for insurance, buy policies, interact with their insurers, make claims and renew or amend policies.
Products covered in this Report
This Report is a consumer research-focused overview of the UK personal lines general insurance market.
General insurance is insurance that covers (non-life) risks for a limited period, typically one year.
The main sectors within the personal lines market 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 2019 for more information).
Property – Property 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 2019 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 will pay the costs of medical treatment for acute conditions (see Private Medical Insurance – UK, October 2019 for more information).
Miscellaneous and pecuniary loss – Relates to financial losses that may have occurred, includes travel insurance (see Travel Insurance – UK, February 2019), pet insurance (see Pet Insurance – UK, August 2019), legal expenses, etc.
