UK Personal Lines Insurance - Distribution Dynamics 2023

UK Personal Lines Insurance - Distribution Dynamics 2023

Summary

This report examines consumer channel preferences in the personal lines space and how these have changed over time, including the drivers behind customers’ choices. It also forecasts the future of personal lines distribution to 2027.

We estimate that in 2023, the direct channel remained the preferred choice for personal insurance purchases, accounting for 51.5% of distribution. Meanwhile, we expect the broker channel to have increased its market share to 33.7% in 2023e. On the other hand, we expect the bank and affinity channels to have lost market share in 2023e, falling to 5.9% and 6.2%, respectively. As insurers and distributors continue to enhance their online capabilities, consumers are increasingly opting for online insurance purchases. Notably, consumers prioritize cheaper premiums and reputation when selecting an insurance provider.

Scope

• According to GlobalData’s 2023 UK Insurance Consumer Survey, Aviva is the leading brand in the personal lines market. It is the top player in motor and home while also ranking in the top three for travel insurance.
• Across all lines, online methods are the preferred purchasing option.
• Customers who use PCWs show a greater inclination to switch compared to those utilizing other channels.
• The primary factors influencing consumers’ choice of insurance provider relate to either the cost of premiums or the reputation of the provider.

Reasons to Buy

• Understand how certain distribution channels in the UK general insurance market performed in 2022.
• Ascertain how underlying factors and drivers in these markets will shape them going forward.
• Discover preferred methods of purchasing through each respective distribution channel.
• Understand switching behaviors in each channel.
• Explore future market shares for personal lines distribution to 2027.