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Home Emergency Insurance 2015

  • Executive Summary
    • Regulation will strengthen the need for market players to review their business strategies
    • Key findings
    • Critical success factors
  • The UK Home Emergency Insurance Market
    • Introduction
    • Energy suppliers and insurers are still the main market players
      • A strong, integrated maintenance network is vital for meeting the range of customer claims
      • Delivering a range of home emergency cover requires a number of essential services
      • Utility companies are still the major channel of distribution
      • British Gas and HomeServe are highly successful providers
    • There are opportunities for growth
      • A strengthening housing market is driving growth in home emergency cover
      • Rising demand for rental accommodation is driving growth in landlord emergency cover
      • Central heating installations are also providing new opportunities
        • Table Number of households by heating type (000s), 2008-13
      • The market has seen little change in GWP over the past few years
        • Table Home emergency GWP (£000s) and annual growth rate (%), 2011-19f
      • GWP is forecast to hit £1,148m by 2019
      • Current home emergency cover take-up reveals that much potential remains for new business
  • Regulation and Technology are Shaping the Market
    • The FCA is increasing pressure on the home emergency market
      • Regulatory action is justified
      • Our FSCI Survey supports the FCA's findings
        • Table The majority of respondents have not claimed on their electricity, central heating, or plumbing policies
      • Banning the practice of opt-out selling
      • Regulatory pressure will strengthen the industry as a whole
    • Technological innovation is impacting the home emergency market
      • Smart devices are changing the market landscape
      • Energy companies are already providing applications and smart devices
      • Insurers must do more to ensure the effective use of smart home technology
      • The next logical step for insurers is to monitor customer behavior and data
  • Competition Remains Stable
    • Competition endures despite a well-established and dominant incumbent
      • Centrica dominates the home emergency market by premium income
        • Table Top 10 personal assistance providers by GWP including home emergency, (£000s), 2011-14
      • The success of top market players is attracting sellers to the market
      • Customers have considerable choice within the home emergency market
      • Several of the top home insurers do not directly underwrite home emergency policies
      • The "big six" energy companies have pursued different means of providing cover
    • Different players have different marketing strategies
      • British Gas dominates home emergency marketing expenditure
      • Providers pursue a number of advertising strategies to increase penetration
  • Appendix
    • Abbreviations and acronyms
    • Methodology
      • Primary Sources
      • Secondary Sources
    • Bibliography
    • Further reading

Home Emergency Insurance 2015

Summary

This report explores the key developments within the UK home emergency market. It focuses on the market composition, the level of competition, and future prospects. Furthermore, it examines the regulatory measures by the FCA concerning the sale of add-ons and selling practices.

Synopsis

  • Gain helpful insight into the competitiveness of the market.
  • Assess the market dynamics of home emergency insurance and future growth.
  • Discover the marketing strategies employed by market participants.
Reasons To Buy
  • What is the level of competition experienced in the market?
  • Which measures has the FCA proposed and what does it aim to achieve?
  • How is the market performing and what are its future prospects?
Key Highlights

The regulatory authorities view the use of add-ons as being a key instrument in the mis-selling of home emergency cover, resulting in customers being locked in to needless insurance policies.

British Gas and HomeServe remain the two key providers for home emergency products, with large numbers of customers still using their services for insuring their property against unforeseen risks.


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