United Kingdom (UK) Private Motor Insurance - Distribution and Marketing 2021

United Kingdom (UK) Private Motor Insurance - Distribution and Marketing 2021

Summary

At a time when COVID-19 is changing consumer behavior, this report explores how purchasing preferences have changed over time. It discovers what is most influential to customers when purchasing a motor insurance 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 private motor insurance market over the next few years.

Price comparison websites (PCWs) are now the most common avenue for buying motor insurance, having grown their share. COVID-19 has impacted the finances of many consumers, meaning some will have been more inclined to look for motor insurance deals through PCWs. In turn, the proportion of sales accounted for by insurers directly (previously the leading channel) declined.

Most policies are bought online. Despite the easing of lockdown measures, the share of face-to-face purchases barely increased - highlighting a shift in purchasing habits towards online methods.

Scope

• Admiral remained the leading provider despite a decrease in market share. Aviva’s share increased, meaning that the gap between the two largest providers has narrowed.
• Less than 5% of policyholders were new to the market in 2021, indicating that growth in market share was driven by capturing switchers.
• Visiting a PCW is the most popular pre-purchase activity, with close to 60% of customers doing so.
• Purchasing motor insurance online is by far the preferred method, accounting for 71.2% of all purchases.

• Understand consumer purchasing decisions and how these will influence the private motor 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 the leading motor insurance providers.
• Discover which providers lead the way in the private motor insurance space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.

Companies Mentioned

Aviva
Admiral
Direct Line
AXA
Hastings Direct
Saga
Churchill
LV=
Ageas
Tesco Bank
The AA
Honcho
Compare the Market
Confused.com
GoCompare
MoneySuperMarket
Getsafe Insurance
Caura
Markerstudy
ERS
Sabre
Somerset Bridge
Lloyds Bank
Co-op Insurance
NFU Mutual
Adrian Flux