United Kingdom (UK) Household Insurance - Distribution and Marketing 2021

United Kingdom (UK) Household Insurance - Distribution and Marketing 2021

Summary

This report explores how purchasing preferences have changed over time for contents, buildings, and combined cover. It discovers what is most influential to customers when purchasing a policy and also reveals the most popular providers in the market. New trends and innovations are highlighted, as well as the key factors that will influence the household insurance market over the next few years.

Consumers most commonly purchased household insurance direct from an insurer in 2021. Over 55s were the most likely to buy direct from an insurer. Direct sales faced increased competition from price comparison websites (PCWs) as more customers turned to online channels. Meanwhile, the banking channel lost ground as COVID-19-induced lockdowns led to branch closures.

New home insurance renewal pricing practices will tackle the price disparity between new and existing customers, meaning that customers could become less inclined to switch provider at renewal.

Scope

• Aviva is the top provider among consumers across all three home insurance products - buildings, contents, and combined insurance.
• Visiting a PCW is the most popular pre-purchase activity, with 52.2% of combined customers doing so. This prominence has increased from 2020, highlighting how crucial price is as a factor in the decision-making process.
• Purchases of household insurance policies through a PC/laptop accounted for more than half of all purchases.
• Claims inflation is expected to continue posing challenges for the home insurance market, owing to supply chain and energy disruptions, workforce volatility, and high inflation levels.

• 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.

Companies Mentioned

Aviva
Admiral
Direct Line
AXA
AXA Assistance
Saga
Barclays
Churchill
Sainsbury’s
Halifax
More Than
Asda
HSBC
LV=
Ageas
Allianz
Policy Expert
Tesco Bank
Legal & General
Comparethemarket.com
Confused.com
Gocompare.com
Moneysupermarket.com
John Lewis
NFU Mutual
Cooperative Insurance
Lloyds
Urban Jungle
Acre
LeakBot
Digital Partners
Sedgwick
Ice InsureTech
Hood Group