UK Personal Insurance Consumers 2007

Published by: Datamonitor

Published: Sep. 26, 2007 - 29 Pages

Table of Contents

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

Abstract

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