United Kingdom (UK) Personal Lines Insurance Distribution and Marketing 2021

The direct channel remains the most frequently used channel for consumers when it comes to purchasing insurance. The channel fell slightly in its share of distribution in 2020, as increasing financial constraints induced by the COVID-19 pandemic have driven consumers to use brokers and price comparison websites (PCWs) slightly more frequently in search of better deals. Consumers are more likely to purchase insurance online, with many insurers and distributors increasing their online and digital capabilities in response to changing consumer habits driven by the pandemic.

The United Kingdom (UK) personal lines insurance distribution and marketing report examines consumer channel preferences and how these have changed over time. It explores the drivers behind customers choosing one channel over another. The report highlights the market shares of the largest players by product line and channel. It also looks at the marketing and advertising spending of some of the largest players in the industry, including PCWs. Additionally, the report forecasts the future of personal lines distribution to 2025, discussing some of the key factors behind its evolution.

What are the key channels in the UK personal lines insurance market?

The key channels in the UK personal lines insurance market are direct channel, broker channel, bank channel, affinity channel, and price comparison website channel.

Direct Channel

Consumers generally favor purchasing through the direct channel online. In 2021, the majority of UK consumers purchased their insurance online via a PC or laptop. The driving factors behind consumers choosing this channel include insurer reputation and cheaper premium prices.

Broker Channel

Unlike all other channels, the most commonly chosen method of contact and purchase within the broker channel is over the phone. Price and broker relationships are the most important factors for consumers when opting to choose this channel. Brokers work with a panel of different insurers. The market competition aspect of this allows brokers to offer competitive prices to consumers who choose this purchasing channel.

Bank Channel

In 2020, the purchase of personal insurance through banks has been driven primarily by the sale of home insurance, with many mortgage lenders benefiting from the cross-selling opportunity. This is supplemented with other benefits offered for these accounts, such as travel insurance. Despite the pandemic (and the resulting temporary branch closures in 2020), face-to-face purchases through the channel have remained relatively high.

Affinity Channel

The channel remains important for the distribution of other insurance products, including pet insurance. Online purchasing methods are very common for consumers employing this channel.

Price Comparison Website Channel

In 2021, the number of consumers using a PCW to purchase insurance increased driven by increases in usage in the motor, home, and pet lines. Despite a purely online/digital presence, app usage for PCWs remains very low. PCWs are very good at encouraging consumers to switch providers, with over half of both motor and home policyholders who used a PCW switching provider in 2021.

UK personal lines insurance market, by channels

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Who are the leading advertisers in the UK personal lines insurance market?

The leading advertisers in the UK personal lines insurance market are Gocompare.com, Direct Line, LV Group., Moneysupermarket.com, Confused.com, Saga Services, Aviva, NFU Mutual, Comparethemarket.com, and Admiral.

UK personal lines insurance market, by leading advertisers

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Market report scope

Reasons to Buy

• Understand how consumers purchase motor, home, travel, and pet insurance across all channels – direct, broker, bank, affinity, and PCWs – and how this is likely to change in the near future.
• Discover the most selected providers by product line and learn how the popularity of each channel has changed in recent years.
• Improve the customer journey and brand loyalty by understanding what influences purchasing decisions and how to meet customer needs.
• Observe which insurance providers and PCWs have the largest spend in advertising and understand which insurance product attracts the largest spend.
• Learn how key players and upcomers are adapting their propositions for changing consumer preferences.