United Kingdom (UK) Bancassurance Distribution Dynamics and Future Market, 2022 Update

United Kingdom (UK) Bancassurance Distribution Dynamics and Future Market, 2022 Update

Summary

This report discusses the bancassurance landscape for UK commercial and personal insurance. The SME market is discussed, with due consideration given to smaller businesses and their comparatively simpler insurance needs. In addition, market leaders are outlined and consumer purchasing and switching behaviors are discussed.

The UK bancassurance distribution landscape varies for personal and commercial lines. Bancassurance is important as it allows customers to conveniently purchase insurance products packaged alongside a bank account or as an optional extra. While insurance providers receive access to a bigger pool of potential customers through partnerships, banks benefit from this integration by targeting customers who are looking for more than a banking service. Despite challenges from reduced consumer confidence and the ongoing closure of bank branches, some banks continue to see bancassurance as an important source of revenue and are investing in new technologies to stay competitive.

Scope

• The bank channel makes up 7% of total personal lines distribution, which amounted to GBP1.6 billion in GWP in 2022.
• Switching behaviors mainly revolve around renewing current policies for personal and commercial lines. Private medical insurance experienced the greatest percentage of consumers switching in 2022.
• Over half of SMEs purchased their insurance online through the bank channel, showing the transition towards digitalization.
• Monthly direct debit is the preferred method of payment for motor insurance and travel insurance in the bank channel.

Reasons to Buy

• Understand the key consumer switching and purchasing behaviors in the channel.
• Discover how the market leaders have strategized to achieve their success.
• Learn about the key partnerships and offerings from market leaders.