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UK Personal Insurance Consumers 2007

Datamonitor
September 26, 2007
29 Pages - SKU: DFMN1580768

Abstract Table of Contents Search inside this report Related Reports

Countries covered: United Kingdom

Introduction

The brief is an invaluable guide to changing consumer trends in the UK motor and household insurance market. The brief analyses how the age and income of consumers influence their choice of platform in arranging motor and household insurance. In addition, it provides insight into consumer switching behavior and motivation for choosing a provider for consumers buying via the main platforms.

Scope

Statistics on consumer purchasing trends in the UK motor and household insurance market in 2007 Analysis of customer motivation and loyalty to current provider by platform

Highlights

Younger consumers form the age group most likely to use the internet when making a home or motor insurance purchase, with 41% of consumers aged 1824 buying motor cover and 27% buying home cover online in 2007. However, the proportion of consumers arranging home or motor insurance online declines steadily with age.

Reasons to Purchase

Understand what motivates consumers to buy motor and household insurance and which consumers are most likely to switch provider at renewal Gain insight into which distribution platforms are growing and which are in decline Understand which consumer segments are likely to favor the platforms your company operates in

DATAMONITOR VIEW: CATALYST; SUMMARY; ANALYSIS; The internet continued to gain market share in 2007, although telephone remained the dominant platform; The telephone remained the largest platform for arranging a motor policy in 2007, but the internet platform is growing fast; The telephone and face-to-face platforms have been declining steadily among motor insurance consumers; More consumers are turning to the internet to arrange their motor policies; Face-to-face arrangements of household insurance policies continue to decline in favor of phone and internet; Face-to-face distribution of household insurance has been declining for several years; The number of consumers arranging household insurance online or over the telephone grew in 2007; Consumers' insurance purchasing behavior varies by age and income; The internet is most popular among younger consumers as a platform for purchasing motor and household insurance; Arranging home or motor insurance over the telephone remained the most popular option for consumers, regardless of age; The face-to-face platform was most popular among older consumers in 2007; The face-to-face platform was most popular among low-income consumers; Affluent motor insurance consumers were the most likely to have purchased their insurance online in 2007; Arranging insurance over the telephone was popular at all income levels in 2007; Consumers' propensity for switching provider varies by platform used; More than a third of consumers who purchased their motor insurance online switched provider at renewal; Consumers purchasing their motor policies face-to-face, by phone or via post are unlikely to change provider; Consumers are more likely to switch if they purchase their household insurance online; Switching provider is more prevalent among younger consumers; Motor insurance consumers become less likely to change their provider as they age; The loyalty of household insurance consumers also increases with age; Online consumers are more price-conscious than consumers buying via other platforms; Consumers purchasing a motor policy via the internet are more likely to be motivated by cheaper quotes than others; Online household insurance consumers show greater price sensitivity than consumers using other platforms
APPENDIX: Definitions
Channel: Direct insurer/writer/
channel: Platform; Methodology; Ipsos MORI methodology and contacts; Sample design; Further reading; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: Distribution of private motor insurance, by platform, 2003-07; Table 2: Distribution of household insurance, by platform, 2003-07; Table 3: Consumers buying motor and household insurance via the internet, by age group, 2005-07; Table 4: Consumers buying motor and household insurance by telephone, by age group, 2005-07; Table 5: Consumers buying motor and household insurance face-to-face, by age group, 2005-07; Table 6: Consumers buying motor and household insurance face-to-face, by income, 2005-07; Table 7: Consumers buying motor and household insurance via the internet, by income, 2005-07; Table 8: Consumers buying motor and household insurance by telephone, by income, 2005-07; Table 9: Propensity to switch motor provider and likelihood of getting other quotes, by distribution platform, 2007; Table 10: Propensity to switch household provider and likelihood of getting other quotes, by distribution platform, 2007; Table 11: Private motor retention rates by age, 2003-07; Table 12: Household insurance retention rates by age, 2007; Table 13: Motivations for taking out a motor insurance policy, by distribution platform, 2007; Table 14: Motivations for taking out a new household insurance policy, by distribution platform, 2007
List of Figures: Figure 1: The percentage of consumers arranging their motor insurance online has been increasing steadily since 2003; Figure 2: Phone remains the largest distribution platform for household insurance in 2007; Figure 3: Younger consumers were most likely to purchase home or motor insurance online in 2007; Figure 4: Consumers of every age group remain most comfortable arranging their insurance by telephone; Figure 5: The proportion of motor insurance bought face-to-face increased with age; Figure 6: The face-to-face platform declined in popularity among more affluent consumers in 2007; Figure 7: Consumers in the highest income brackets were most likely to buy motor and household insurance via the internet in 2007; Figure 8: Use of the telephone to arrange household insurance rose slightly relative to household income in 2007; Figure 9: Consumers purchasing their motor insurance online were more likely to change their insurance provider in 2007; Figure 10: Consumers are most likely to switch from an insurance provider when they purchase their household insurance online in 2007; Figure 11: Older consumers were more likely to stay with their current providers in 2007; Figure 12: Consumer loyalty increased with age among household insurance consumers in 2007; Figure 13: Obtaining a cheaper quote was the most common reason for choosing a provider across all distribution platforms in 2007; Figure 14: There is a greater price awareness among consumers who purchase their household insurance online in 2007

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UK Personal Insurance Consumers 2007

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