Dallas, TX: ReportsandReports announce Japanese UK Personal Insurance Distribution 2010 Market Research Report in its Store. Browse complete UK Insurance Market Report This report provides an analysis of the distribution of personal insurance in the UK. It includes information on the advertising spend and market share of the key players and analyzes the effect of online aggregators in the personal lines sector. It also details notable deals made over the past year and explores the evolving balance between the various distribution channels. Scope Highlights As of March 2010, the internet was the most popular platform for arranging motor insurance overall, with more than half of all respondents stating that they had used the platform. This highlights consumers’ confidence in arranging the policies and other financial transactions online without assistance. Overall, the top 10 insurance advertisers spent 1.1% less on advertising in 2008 compared to 2007, dipping from £216.4m overall to £214.0m. This was perhaps indicative of the effect the economic recession had on the insurance sector as a whole, rather than due to a specific trend. Carole Nash insures 300,000 motorcycles, which equates to about a quarter of all licensed bikes in the UK. Since acquiring more than 17,000 policies from the AA in 2004, Carole Nash has been purchasing motorcycle books from those who do not consider them a core product. Reasons to Purchase Table of Contents Overview Catalyst Summary Executive Summary The direct channel gained market share, while brokers saw their share decline The direct channel remains the dominant provider of private motor insurance Banks and building societies hold the largest share of the UK home insurance market The top 10 advertisers increased their expenditure compared to 2008 The vast majority of consumers use the internet or telephone to arrange their motor insurance cover Half of all consumers arrange their motor insurance over the internet Consumers aged between 25 and 34 are more likely to arrange their motor insurance online The broker channel has been gradually growing its household insurance market share Brokers distributed an estimated 28% of the private motor insurance GWP in 2009 Brokers hold a growing share of the home insurance market Banks and building societies lost personal insurance market share in 2009 Bancassurers hold the largest share of the UK household insurance market The presence of affinities has decreased in the UK home and motor insurance markets Affinity groups and retailers saw a slight dip in their private motor market share from 2008 Fortis procures significant partnerships to provide Tesco and Toyota with home and motor insurance Over 60% of consumers use an aggregator when purchasing motor insurance A sizeable proportion of aggregator visitors use them for research purposes only Table of Contents Table of figures Table of tables Personal Insurance Distribution Dynamics Introduction The direct channel gained market share, while brokers saw their share decline The direct channel remains the dominant provider of private motor insurance The broker channel is the second largest distributor of private motor insurance Corporate partnerships witnessed their share contract in the private motor market The banks and building societies market share is diminishing Banks and building societies hold the largest share of the UK home insurance market The majority of home cover sales can be attributed to banks and building societies Brokers closed the market share gap with the bancassurers in 2008 and 2009 The direct channel retains a level share of the household insurance market Partnerships share of the UK home insurance market has declined The vast majority of home and motor insurance policies are distributed through the top 10 groups and brands Thirteen of the largest insurance groups hold the majority of both the home and motor insurance markets Direct Line is particularly popular among younger consumers for private motor insurance Older consumers are more likely to select a home insurance policy targeted at their age group Direct Line’s and Halifax’s combined contents and buildings insurance policies are particular popular among younger consumers Home contents insurance providers showed little age to market correlation, aside from RIAS and Saga Consumers aged 18-24 were most likely to arrange buildings only home insurance policies through a top ten distributor Two aggregators appeared in the top 10 advertisers in 2009 The top 10 advertisers increased their expenditure compared to 2008 RBS brands Direct Line and Churchill were two of the top three insurance advertisers in 2009 Zurich Insurance became a top 10 advertising spender after more than doubling its advertising spending in 2009 Acromas Group insurers decreased their advertising spend in 2009 Aviva resumes its high advertising spend from 2007 The top insurance advertisers spent half their budgets on television advertising in 2009 While TV advertising remains the medium eliciting the most expenditure, direct mail has increased in prominence as an advertising platform Saga and HomeServe spent the most on direct mail advertising Press, radio and the internet were used to a lesser extent in insurance advertising Personal Insurance Consumers Introduction Home and motor insurance remain the largest potential pools of customers for personal lines insurers The sizable market for private motor insurance included a larger and more even penetration spread than in 2008 Middle-aged and older consumers are more likely to have motor cover, perhaps necessitating a more universal strategic focus than before Motor insurance consumers with higher incomes have higher penetration rates The social grade of consumers has less bearing on the likelihood of arranging motor insurance Combined household insurance is the most popular type of product sold to consumers There is a healthy market for home insurance products Consumers over the age of 55 are the largest target market for combined policies Higher income households have higher penetration rates for combined home insurance and buildings only cover Consumers belonging to socio-economic groups A and B display consistently higher penetration rates for combined household products The vast majority of consumers use the internet or telephone to arrange their motor insurance cover Half of all consumers arrange their motor insurance over the internet Internet and telephone sales are becoming increasingly prevalent in the home insurance market Internet sales strategies would prove more effective than telephone sales for younger personal insurance policy buyers Consumers aged between 25 and 34 are more likely to arrange their motor insurance online The telephone surpasses the internet as the most popular platform for arranging home contents insurance Consumers aged over 64 prefer to use the phone to arrange their insurance policies, whereas other groups prefer to use the internet Internet-based sales strategies are effective at targeting higher income households To a point, higher income consumers are more comfortable purchasing their motor insurance cover online Internet selling strategies for combined home insurance should remain the core method of targeting consumers with household incomes over £30,000 Consumers are generally more likely to purchase their home contents insurance over the telephone The internet was the most popular method of motor insurance arrangement Consumers belonging to socio-economic group E displayed the lowest tendency to purchase their motor insurance online A and E consumers prefer to purchase their combined policy over the telephone The telephone is the preferred platform for arranging home contents insurance policies Insurance providers’ retention rates vary with age and type of insurance Older consumers are generally more likely to stay with their existing insurance company Consumers aged under 34 displayed the least loyalty to their insurance providers Consumers aged 45-64 are more likely to stay with the same home contents insurance provider at renewal Retention rates for combined home insurance peak with middle-aged consumers Wealthier consumers are the least loyal to their home insurance providers Motor insurance consumers displayed a similar level of switching among all income bands Consumers earning less than £15,000 are least likely to change their combined insurance provider Consumers with a household income of £75,000-99,999 are the most loyal to their home contents insurance policy providers Price should be the primary focus in insurance marketing campaigns Price was the most commonly cited reason for selecting a motor insurance provider Insurance companies should emphasize competitive prices when marketing their combined policies While price remains the dominant attraction for insurance buyers, older consumers are more likely to consider other factors Although it remains the key factor, older consumers of motor insurance are less concerned about price Older consumers increasingly value non-price factors when choosing their home insurance providers Direct Insurance Introduction Direct insurers have a growing share of the private motor market Direct insurers have experienced an increase in their market share in private motor cover since 2006 Direct insurers hold a level share of the household market The top direct insurers significantly increased their overall advertising budget Advertising spend on motor and travel insurance decreased, while expenditure on other forms of general insurance increased by varying amounts All forms of media advertising saw increased direct insurer funding, apart from cinema campaigns Direct Line remained the top direct insurance advertiser in 2009, albeit by a smaller margin Direct Line still dominates most areas of motor and home insurance The top five direct insurers comprised over a quarter of the motor insurance market Direct insurers consistently form the top five players in the home insurance market Direct insurers continued to launch new products in a bid to their grow market share AXA launched a new direct motor cover product Zurich launched its new Zurich Connect product Fortis will rebrand itself to Ageas RBS Insurance is to sell Direct Line and Churchill within a few years esure has undergone a management buy-out from the Lloyds Banking Group Brokers and Intermediaries Introduction The broker channel has been gradually growing its household insurance market share Brokers distributed an estimated 28% of the private motor insurance GWP in 2009 Brokers hold a growing share of the home insurance market The main focus of broker insurance advertising was via direct mail The top 10 brokers allocated most of their advertising budget on private motor and home insurance marketing Brokers continue to display a marketing strategy that is primarily focused around the direct mail platform The AA cut its advertising spend, while RIAS significantly increased its budget The AA dominated over other insurance brokers in both home and motor insurance The AA was the market leader for broker-distributed private motor insurance The broker household insurance market is dominated by AA, RIAS and Swinton The broker sector has seen a number of big structural changes over the last year LV Broker makes full use of its broking relationships Brightside purchased eCar and eBike for up to £34.6m Allianz Clear launches and incorporates a home insurance aggregator Swinton increased its online sales effort Castle Cover adds Zenith insurance to its panel Carole Nash wins the Co-operative motorcycle book Banks and Building Societies Introduction Banks and building societies lost personal insurance market share in 2009 Bancassurers held an estimated 5% share in the private motor market in 2009 Bancassurers hold the largest share of the UK household insurance market Spending by the leading bancassurance advertisers decreased in 2009 Bank insurers more than tripled their spend on marketing their general/combined range, despite overall cuts to their budgets In 2009, banks showed a slight swing toward a more contemporary mass-market advertising strategy Half the top 10 bancassurers showed an increase in advertising budget in 2009 Banks hold a significant proportion of the home insurance market, but only have a small presence in motor insurance Bancassurers have a diminished and negligible market presence in motor insurance Lloyds Banking Group controls a significant share of the UK home insurance market Barclays will continue to distribute Aviva home insurance Despite decreased consumer confidence, bancassurers are still targeted by insurers as a means to growth Barclays will continue to distribute Aviva home insurance RSA will provide West Bromwich BS with household insurance policies Affinity Groups and Retailers Introduction The presence of affinities has decreased in the UK home and motor insurance markets Affinity groups and retailers saw a slight dip in their private motor market share from 2008 Affinities make up an estimated 15% of total UK household insurance GWP The top affinity insurance advertisers increased their budget in 2009 A third of the insurance products advertised by the top 10 affinity insurance advertisers are niche lines The top 10 affinity insurance advertisers use direct mail campaigns to effectively leverage their customer databases While most of the top 10 affinity insurance advertisers decreased their advertising spend in 2009, their overall expenditure increased Affinity partnerships comprise almost 10% of the general insurance market The top five brandassurers hold a lower market share than in 2008 Affinity partnerships have the largest share in the combined policy market A number of influential affinity partnerships were formed in the last year Fortis procures significant partnerships to provide Tesco and Toyota with home and motor insurance Kwik-Fit has sold off its insurance wing to Fortis Carole Nash wins an insurance deal with Harley Davidson Thornside to provide Sainsbury’s pet insurance Heath Lambert wins Debenhams deal Aggregators and Price Comparison Sites Introduction Over 60% of consumers use an aggregator when purchasing motor insurance A sizeable proportion of aggregator visitors use them for research purposes only Insurance aggregator advertising has become a four-horse race Only negligible amounts were spent on aggregator advertising outside of the top four More than three-quarters of the top four aggregators’ advertising budget was spent on motor insurance cover The leading four aggregators are highly dependant on TV advertising The aggregator market is innovative and highly competitive MoneySupermarket.com’s revenue declined in 2009 MSN and BeatThatQuote.com have launched a new comparison site Future Decoded Introduction The direct channel in the private motor insurance market is predicted to contract after 2011 The direct channel has shown consistent growth since 2007 Brokers are predicted to lose market share until 2011 and thereafter regain it Affinity partnerships are forecast to gradually increase their market share over the next five years As consumer confidence in the banking sector improves, bancassurers will gain market share in private motor insurance distribution Banks and building societies are predicted to remain the dominant provider of UK household insurance The direct channel is expected to see an increase in market share during the forecast period Bancassurers are predicted to retain the largest share of the UK household insurance market Brokers are expected to see a decline in market share from around 2011 Affinity partnerships will gradually increase their market share in UK household insurance Appendix Definitions Premium income measures Earned premiums Gross premium Net premium Written premiums Distribution definitions Bancassurers Banks/building societies Brandassurers Broker Company staff Direct channel ‘Other’ company agents Partnerships Methodology Datamonitor General Insurance Consumer Survey Primary and secondary research Distribution estimates and forecast methodology Advertising and marketing spend data Further reading Ask the analyst Datamonitor consulting Disclaimer Browse complete UK Insurance Market Report Browse all Banking and Financial Market Browse all Datamonitor Market Research Reports Browse all Latest Reports Related Reports: UK Personal Insurance Distribution 2009 Distribution in UK Personal General Insurance 2008 UK Commercial Insurance Distribution 2010 About Us: Contact:
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Showing posts with label Personal Insurance Distribution Market. Show all posts
Showing posts with label Personal Insurance Distribution Market. Show all posts
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