Home insurance - UK - December 2019
Overview
 
What you need to know 
The market for domestic property insurance in the UK is large and stable, with around two thirds of adults owning a policy. It is also fairly consolidated, with the top five insurers underwriting around three fifths of premium income in 2018. Despite this concentration in supply, there is fierce competition between distributors, particularly in the online space. This, along with the influence exerted by price comparison sites and changing buyer behaviour, has served to suppress real premium growth in recent years. At the same time, cost pressures remain high. In 2018, the market barely made an underwriting profit, while a loss could be on the cards for 2019, due to an increase in weather-related claims in the final quarter.

In this Report, Mintel considers what insurers need to do to drive growth going forward, whether through new product innovation or by adopting more sustainable pricing models. The market and company analysis is supplemented by the findings of an online consumer survey. The latter provides insight into product ownership and renewal behaviour, and assesses people’s interest in cybercrime cover. Additionally, it identifies opportunities for new business, by revealing people’s plans for the coming year, such as moving home, undertaking a major renovation and acquiring high-value items.

Products covered in this Report
The focus of this Report is on domestic home insurance, which encompasses two main policy types: buildings and contents insurance. These can be bought separately or combined in one policy.

●	Buildings insurance covers the structure of a home and any permanent fixtures and fittings such as fitted kitchen units and bathroom suites.
●	Contents insurance covers the cost of replacing or repairing possessions if they are damaged, destroyed or stolen.
●	Policy add-ons – policyholders can add additional cover to their basic buildings insurance policy to include extras such as accidental damage and legal expenses. They can also extend their contents insurance to protect possessions when taken outside their home.