United Kingdom (UK) Household Insurance Distribution Dynamics 2023

United Kingdom (UK) Household Insurance Distribution Dynamics 2023

Summary

This report explores how purchasing preferences have changed over time in the UK’s 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.

GlobalData expects the household insurance market to have rebounded in 2023, increasing by 2.9% to GBP6.1 billion in terms of gross written premiums. The seasonal trend of premiums declining in the first quarter and rising in the second quarter came to an end in 2023. Combined, buildings-only, and contents-only premiums continued to rise in Q1 2023 and Q2 2023 as per the Association of British Insurers (ABI). This trend was driven by higher average claim costs, high property prices and maintenance costs, and increased risks from severe weather events. As a result, consumers have become increasingly price-sensitive in this market.

Scope

• The insurer channel was preferred among combined insurance customers, accounting for 35.6% of sales in 2023.
• According to GlobalData’s 2023 UK Insurance Consumer Survey, online via a PC/laptop is the most popular method of purchasing contents-only insurance across all distribution channels, except for brokers.
• Embedded home insurance has a great deal of room to grow in the upcoming years. Its progress will be closely tied with the development of smart home technology and related insurance products.

Reasons to Buy

• 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 behaviors.