United Kingdom (UK) Private Motor Insurance Distribution Dynamics 2023

United Kingdom (UK) Private Motor Insurance Distribution Dynamics 2023

Summary

This report explores how purchasing preferences have changed over time in the UK’s private motor insurance market. It discovers what is most influential to customers when purchasing a motor 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.

All pre-purchasing activities increased in 2023, except for research through social media. Conducting price comparisons by visiting a price comparison website (PCW) before purchasing a motor insurance policy is the most popular pre-purchase activity undertaken by consumers. This action registered an increase of 0.7 percentage points (pp) in 2023 as compared to 2022.

Scope

• PCW and insurer channels accounted for 66.6% of private motor insurance purchases in 2023, a 1pp decline from 2022. The decline was caused by a 3pp decline for the PCW channel.
• Brokers, the third-most preferred channel, accounted for 17.9% of purchases in 2023. The channel’s share grew by 2.1pp in 2023, owing to greater demand for advice amid the cost-of-living crisis.
• In 2023, the top 10 providers accounted for 70.4% of the market, compared to 66.6% in 2022. Three of these providers recorded a decrease in market share. However, Aviva, the largest provider in 2023, increased its share by 3.2pp.

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 private motor insurance space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behavior.