UK Personal Lines Distribution
All the vital news, analysis, and commentary curated by our industry experts.
Almost half of policies across all of the personal lines markets are distributed through the direct channel. Price comparison site usage has fallen but they remain an important port of call for customers – whether for research, quote comparison, or regular sales purposes. The online channel remains important to consumers purchasing personal lines as the use of digital devices has become ubiquitous and internet usage gains in popularity.
Verdict Financial’s “UK Personal Lines Distribution” explores consumer purchasing behavior and how it is developing across the four main personal insurance product categories. The report discovers what is most influential to customers when purchasing a policy and also reveals the most popular providers in each of the respective markets. New trends and innovations are highlighted along with the key factors influencing the distribution of personal insurance products.
Reasons to Buy
To understand consumer purchasing decisions and how these will influence the market over the next few years.
To improve consumer engagement by recognizing what is most important to customers and how insurers can adapt their products and services to meet their needs.
To discover the top providers in the personal lines markets and how the distribution of personal insurance products is developing now, and also how it will evolve in the future.
Adapt and improve your company’s distribution strategy to ensure it is aligned with customer purchasing attitudes, behaviors, and expectations.
Marks & Spencer
The Co-operative Insurance
Insure & Go
Table of Contents
Low premiums are encouraging customers to say put
Critical success factors
Changing customer attitudes are causing insurers to rethink their strategies
The direct channel continues to grow its share of the personal lines market
Around 50% of policies across personal lines are purchased direct
A strong phone service is required to complement the online proposition
The direct channel is expected to experience little change over the coming years
Aviva and Direct Line lead the car and home markets
Automatic renewals increase among direct customers amid a decline in shopping around
Brokers' share of personal lines shows no real sign of progress
Intermediaries have no more than a 10% share across the personal lines
Telephone is the standout method of engagement for consumers purchasing from brokers
Aviva heads up three of the personal lines markets in the broker channel
Brokers saw a sharp fall in the proportion of customers switching provider
Banks are fully equipped but struggling to attract more personal lines business
Banks are failing to make use of their access to a large customer base
Consumers in the banking channel prefer to use the telephone
Retail banks are now major players in the home and travel insurance markets
Banking channel switching rates offer a mixed picture across the product categories
Retail outlets are performing well in the markets with an established reputation
The retail sector maintains its strong affiliation with pet insurance
The supermarkets dominate the retail channel, with Tesco still the frontrunner
Tesco heads up the individual personal lines product categories
Customer loyalty among car insurance customers is relatively low in the retail channel
Price comparison site usage rates are falling
Fewer policies are purchased using aggregators but they continue to fulfil their purpose
Comparethemarket.com is the top site for aggregator-bought product introductions
Comparethemarket.com leads the way for policies purchased in the aggregator space
Switching levels remain high in the aggregator space
Personal lines distribution
The direct channel and aggregators generate the most business for personal lines insurers
The direct channel and the banking space will experience growth over the coming years
TRENDS AND DEVELOPMENTS
Price has become less of an influencer in the personal insurance space
More consumers are happy to remain with insurers they previously held a policy with
The price is not always right as aggregator headline quotes continue to capture customers
The digital channel offers alternative means for brand and product engagement
Allianz has demonstrated how technology can be used for purposes other than sales
Consumers are still struggling to see the use case for mobile apps
Insurers are battling to make adequate use of social media
Consumers are not using their smartphones for insurance purposes
Insurers providing expedient solutions will decide the channel infrastructure
Clarity and simplicity will be key requirements for insurers in the coming years
Worry+Peace provides a demonstrative view for customers and their policies
P2P concepts remind insurers of the need to maintain relevance
New PassportCard offers an additional route to market for travel insurers
Abbreviations and acronyms
About Verdict Financial
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