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

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

Summary

This report explores how purchasing preferences have changed over time for contents, buildings, and combined household insurance 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.

Visiting a price comparison website (PCW) remained the most popular pre-purchase activity. The share of customers conducting pre-purchase research on PCWs was the highest among customers across all three household insurance products in 2022. Other than visiting PCWs for policy comparison, customers preferred calling their existing provider and visiting their existing provider’s website. Calls and visits to existing providers accounted for over 34% for combined household insurance policies.

Scope

• Three providers featured within the top 10 across each of contents, buildings, and combined insurance products: Aviva, Admiral, and AXA / AXA Assistance.
• Aviva was the top provider among consumers across home buildings and combined insurance product lines, while Admiral was the largest provider for contents insurance in 2022.
• Purchases through internet mediums such as PCs/laptops and provider apps remain the most popular methods for all types of household insurance policies. Combined household insurance sales through provider apps increased by 1.1 percentage points, indicating an opportunity for insurers to invest in better customer interface applications for combined insurance in 2022. Digitalization also helped providers to expand their direct business, particularly through their websites.

• 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.