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UK Pet Insurance: Distribution and Marketing

UK Pet Insurance: Distribution and Marketing

Summary

The UK pet insurance market remains a reasonably consolidated space. While a plethora of pet-focused provider and affinity brands exist in the market, only a handful of underwriters sit behind them and command this sphere. The influence of a dominant set of brands sway the balance of policy distribution in the market.

Synopsis

  • Gain insight into the preferred distribution channels and the advertising platforms insurers are using to complement their distribution strategies.
  • Effectively engage your customers by investing in the distribution methods preferred by different customer groups.
  • Ensure that your distribution strategy is adapted to the threats and opportunities created by comparison sites.
  • Build an understanding of the top pet insurance brands and their importance for partnerships.
Reasons To Buy
  • What are the key distribution channels for pet insurance, and how are they being influenced by comparison sites?
  • What are the preferred methods of arranging pet insurance among customers?
  • Which pet insurance providers spent the most on marketing in H1 2013, and which platforms did they advertise on?
Key Highlights

The pet insurance market has become an increasingly consolidated market, with the top three underwriters accounting for over 75% of the market’s GWP and approaching two thirds of brand selection by surveyed consumers.

Consumers of pet insurance are far more likely to seek advice from friends and family ahead of purchasing. This need may also be satisfied by unknown but like-minded pet owners. Insurers should harness this through highlighting customer testimonials. The most effective way to achieve this is through a presence on social media channels.


  • Executive Summary
    • Market share will increasingly be split between dominant brands and those on price comparison sites
    • Critical success factors
  • Distribution Landscape
    • Introduction
    • There remains potential for growing pet insurance penetration
    • The dog insurance market continues to be the largest segment by GWP
    • Pet insurance customers take a more nuanced approach towards covering purchase
      • Price rules the selection of pet cover, but not to the same extent as for home or car insurance
      • Cover for ongoing illnesses is sought after
        • Table Reasons for selection of pet insurance policy (percentage of respondents), 2014
      • Recommendations from friends are a strong influence on pet cover purchasing
    • Insurers are making use of social media to build engagement with pet owners
    • Most consumers approach insurers directly to arrange insurance
    • Partnerships are a critical component in the distribution of pet insurance
    • Pet insurance customers are going online to purchase
      • One fifth of consumers purchase insurance via comparison sites
      • Aggregators will help to provide a better view of the market for customers
      • Moneysupermarket.com was the most popular comparison site for purchasing
      • The telephone remains a highly important channel
    • Comparison sites are playing a central role in the research stage
    • Allianz alone accounts for almost one third of pet insurance policies
  • Marketing Activity
    • The largest marketing budgets tend to correspond with brand selection
      • Table Top 10 pet insurance advertisers (£), 2010-H1 2014
      • Table Top 10 pet insurance advertisers (market share), 2010-H1 2014
    • Only four brands advertised pet insurance via television campaigns
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Premium income measures
      • Distribution definitions
    • Methodology
      • Primary and secondary research
      • Advertising and marketing spend data
      • Verdict Financial's 2014 General Insurance Consumer Survey
    • Further reading

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