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UK Private Motor Insurance 2007 (Customer Focus)

Datamonitor
September 20, 2007
36 Pages - SKU: DFMN1561297

Abstract Table of Contents Search inside this report Related Reports

Countries covered: United Kingdom

Introduction

The report is an invaluable guide to changing consumer trends in the UK motor insurance market. The report analyses current purchasing trends in areas such as customer loyalty and motivation for choosing an insurance provider. In addition, the report offers an insight into the advertising strategies of the top advertising spenders in the UK motor insurance market.

Scope

Statistics on consumer purchasing trends in the UK motor insurance market
Data on advertising spend by medium for the top motor insurance advertisers in 2006

Highlights

Consumers who arrange their motor policies online are less likely to stay with the same provider than those arranging their motor insurance over the telephone or face-to-face. In 2007, more than a third of consumers who purchased their motor insurance online switched providers when they last renewed their motor insurance.

Reasons to Purchase

Understand what motivates consumers to buy motor insurance and which consumers are most likely to switch provider at renewal
Gain vital knowledge of the advertising strategies of the top motor insurance advertisers

DATAMONITOR VIEW: CATALYST; SUMMARY; ANALYSIS; 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; More consumers are turning to the internet to arrange their motor policies; Retention rates vary by age of consumer and platform used to arrange insurance; The majority of motor consumers will stay with the same provider at the time of renewal; 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; Switching providers is more prevalent among younger consumers; Price remained the main reason for taking out a motor policy across platforms and ages; Consumers purchasing a policy via the internet are more likely to be motivated by cheaper quotes than others; Consumers over the age of 55 are less sensitive to price than younger consumers; The way in which consumers seek information about motor insurance varies relative to age; Previous experience is the most popular source of information and is used more as a consumer gets older; Younger consumers are more likely to use web sources; Television advertisements are used by 14% of consumers overall; Mailshots, brochures and broker advice are mainly used by older people; Advertising for motor insurance products remained dominated by the television campaigns of direct insurers in 2006; Motor insurance advertising increased by 2.3% in 2006 to almost £200 million; Advertising is dominated by insurers, but brokers narrowed the gap in 2006; The top 10 motor advertisers in 2006 consist primarily of direct insurers; The spend of the top 10 grew slightly in 2006, driven mainly by the substantial increases of four motor insurance advertisers; The top 10 motor advertisers focus on television advertising, reflecting the need for direct insurers in particular to build up brand awareness; Most of the largest motor advertisers spent the majority of their budgets on television advertising in 2006; Direct mail advertising is used by most of the top 10 to complement their television campaigns; Press, outdoor and radio advertising were used sparingly by the top 10 motor insurance advertisers in 2006; The smaller advertising budgets of advertisers ranked 11-20 were more evenly split between television and direct mail; The list of advertisers ranked 11-20 contains a more varied mix of providers; Direct mail was the most favored medium among advertisers ranked 11-20; Television advertising was also very important to competitors ranked 11-20 in 2006; Advertisers ranked 11-20 spent smaller amounts on marketing in radio, the press and outdoor; Television remains the most important medium for motor insurance providers; Direct mail remains an important advertising medium, having increased as a proportion of motor insurers budgets; Direct Line remains the leader in brand awareness in 2007
APPENDIX: Definitions; Channel; Direct insurer/writer/channel; Platform; Supplementary data; Methodology; Advertising statistics; Isis 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: Private motor retention rates, 2003-07; Table 3: Propensity to switch motor provider and likelihood of getting other quotes, by distribution platform, 2007; Table 4: Private motor retention rates by age, 2003-07; Table 5: Motivations for taking out a motor insurance policy, by distribution platform, 2007; Table 6: Reasons for choosing current motor insurance policy by age, 2007; Table 7: Sources of information for motor policy, by age, 2007; Table 8: Advertisement spending by type of insurance provider, 2006; Table 9: Top 10 motor insurance advertisers, 2004-06; Table 10: Top 10 motor insurance advertisers' spend by media, 2006; Table 11: Motor insurance advertisers' spending by media, 2006; Table 12: Top 10 TV advertisers, 2006; Table 13: Top 10 direct mail advertisers, 2005-6; Table 14: Top 10 motor insurers by advertising spend and brand awareness of motor insurers, 2007; Table 15: Top 10 insurance providers by spontaneous recognition, 2007; Table 16: Top 10 insurance providers by spontaneous recognition, 2006
List of Figures: Figure 1: The percentage of consumers arranging their motor insurance online has been increasing steadily since 2003; Figure 2: Around three quarters of motor insurance consumers stay with the same company at renewal; Figure 3: Consumers purchasing their motor insurance online were more likely to change their insurance provider in 2007; Figure 4: Older consumers were more likely to stay with their current providers in 2007; Figure 5: Obtaining a cheaper quote was the most common reason for choosing a provider across all distribution platforms in 2007; Figure 6: Reputation was a factor more valued by older consumers than younger ones in 2007; Figure 7: Use of web-based materials was most common among young consumers in 2007; Figure 8: Most older consumers value previous experiences with providers in 2007; Figure 9: Insurers dominate advertising spend for motor insurance, but brokers' spend grew in 2006; Figure 10: Television remained the medium of choice for most of the top 10 advertisers in 2006; Figure 11: Television and direct mail account for almost 90% of spending by advertisers ranked 11-20; Figure 12: Spontaneous consumer awareness of motor insurers against advertising expenditure, 2006

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UK Private Motor Insurance 2007 (Customer Focus)

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