UK Household Insurance: Distribution Dynamics 2024

UK Household Insurance: Distribution Dynamics 2024

Summary

This report explores purchasing preferences within the UK household insurance market. It discovers what is most influential to customers when purchasing a household insurance policy and reveals the market’s most popular providers. New trends and innovations are highlighted, as well as the key factors that will influence the market over the next few years.

In 2024, insurers led the distribution of combined insurance, followed by price comparison websites (PCWs). Sales via banks and PCWs grew by 0.6 percentage points (pp) and 1pp, respectively, in 2024. These increases are likely due to banks enhancing their digital presence in this product space, as well as consumers being increasingly focused on premium pricing amid the UK’s cost-of-living crisis.

Scope

• In the combined insurance segment, all research methods saw an uptick in usage in 2024 compared to 2023, with the exception of customers calling their existing provider for combined insurance policies. This highlights that consumers are increasingly trying to find the best deals as premiums increase and the cost-of-living crisis persists.
• 41.6% of customers chose to renew their combined policy with their current insurer after comparing prices, while 28.7% automatically renewed. In both cases, this represented a 0.3pp decline compared to 2023.
• In 2024, four providers featured within the top 10 across all three household insurance segments: Aviva, Admiral, AXA/AXA Assistance, and LV=.

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how insurers can adapt their products and services to meet their needs.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the household insurance space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behavior.