United Kingdom (UK) Personal Lines Insurance Distribution Dynamics and Future Market, 2023 Update
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This report examines consumer channel preferences in the personal lines space and how these have changed over time, including the drivers behind customers’ choices. It also forecasts the future of personal lines distribution to 2027.
We estimate that in 2023, the direct channel remained the preferred choice for personal insurance purchases, accounting for 51.5% of distribution. Meanwhile, we expect the broker channel to have increased its market share to 33.7% in 2023e. On the other hand, we expect the bank and affinity channels to have lost market share in 2023e, falling to 5.9% and 6.2%, respectively. As insurers and distributors continue to enhance their online capabilities, consumers are increasingly opting for online insurance purchases. Notably, consumers prioritize cheaper premiums and reputation when selecting an insurance provider.
Key UK Personal Lines Insurance Segmentation by Distribution Channels
The key distribution channels in the UK personal lines insurance industry are direct channel, broker channel, bank channel, affinity channel, and price comparison website channel. In 2022, direct channel led the market personal general insurance market in the UK.
Direct Channel: Many consumers purchased their insurance online via a PC or laptop in 2022. Consumers choose this channel primarily due to the reputation of the insurer and the lower premium costs. For larger insurers that operate across numerous lines, cross-selling opportunities exist. The top three direct channel players are admiral, Aviva, and Petplan. This channel will continue its dominance in the coming years as insurers improve their digital capabilities and online consumer experiences.
Broker Channel: Consumers who use brokers value cheaper premiums over specialist advice. More than 33% of consumers felt their broker could get them a better deal. The top three broker channel players are Hastings Direct, Saga, Aviva, and AA. The broker channel will continue to play a significant role in providing personal insurance, holding on to more than a third of the market
Bank Channel: Despite the continuous closure of branches, face-to-face purchases through the channel increased by less than 1pp from 2021 to 2022. The top three bank channel players are Halifax, Admiral, and Nationwide. Short-term growth in the bank channel is forecasted as consumers seek reliable and reputable financial institutions following the pandemic and amid current uncertain macroeconomic conditions.
Affinity Channel: The channel remains important for the distribution of other insurance products, including pet insurance. However, the affinity channel’s share of product distribution fell for home and motor insurance. The top three affinity channel players are Tesco Bank, Post Office, and M&S Bank. Retailers are set to concentrate on their primary areas of business, resulting in stagnant growth in the coming years.
Price Comparison Website Channel: The increased trend towards digitalization suggests an opportunity exists to boost sales via apps. The top three price comparison website channel players are Admiral, Hastings Direct, and Animal Friends.
UK Personal Lines Insurance Industry Analysis, by Distribution Channels, 2022 (%)
For more insights on the distribution channels in the UK personal lines insurance market, download a free report sample
UK Personal Lines Insurance Market Report Overview
Key Distribution Channels | Direct Channel, Broker Channel, Bank Channel, Affinity Channel, and Price Comparison Website Channel |
Top Direct Channel Players | Admiral, Aviva, and Petplan |
Top Broker Channel Players | Hastings Direct, Saga, Aviva, and Aa |
Top Bank Channel Players | Halifax, Admiral, and Nationwide |
Top Affinity Channel Players | Tesco Bank, Post Office, and M&S Bank |
Top Price Comparison Website Channel Players | Admiral, Hastings Direct, and Animal Friends |
UK Personal Lines Insurance Market Distribution Channel Outlook (Value, GWP Billion, 2017-2026)
- Direct
- Broker
- Banks
- Affinity
- Price Comparison Website Channel
Scope
• According to GlobalData’s 2023 UK Insurance Consumer Survey, Aviva is the leading brand in the personal lines market. It is the top player in motor and home while also ranking in the top three for travel insurance.
• Across all lines, online methods are the preferred purchasing option.
• Customers who use PCWs show a greater inclination to switch compared to those utilizing other channels.
• The primary factors influencing consumers’ choice of insurance provider relate to either the cost of premiums or the reputation of the provider.
Reasons to Buy
• Understand how certain distribution channels in the UK general insurance market performed in 2022.
• Ascertain how underlying factors and drivers in these markets will shape them going forward.
• Discover preferred methods of purchasing through each respective distribution channel.
• Understand switching behaviors in each channel.
• Explore future market shares for personal lines distribution to 2027.
Admiral
Hastings Direct
Direct Line
Petplan
Tesco Bank
Animal Friends
Staysure
ManyPets
InsureandGo
RSA
Lemonade
Marmalade
Gallagher
Hastings Direct
Ardonagh
Makerstudy
Halifax
Nationwide
ASDA
Barclays
Lloyds Bank
Natwest
HSBC
Monzo
Qover
Sainsburys
M&S
Pets at Home
Post Office
American Express
Sky
Prestige
Policy Expert
Churchill
Compare the Market
Go.Compare
Money Super Market
Confused.com
Table of Contents
Frequently asked questions
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What are the key personal line distribution channels in the UK personal lines insurance industry?
The key distribution channels in the UK personal lines insurance industry are direct channel, broker channel, bank channel, affinity channel, and price comparison website channel.
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Which are the top three direct channel players in the UK personal lines insurance industry?
The top three direct channel players in the UK personal lines insurance industry are admiral, Aviva, and Petplan.
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Which are the top three broker channel players in the UK personal lines insurance industry?
The top three broker channel players are Hastings Direct, Saga, Aviva, and AA.
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Which are the top three bank channel players in the UK personal lines insurance industry?
The top three bank channel players are Halifax, Admiral, and Nationwide.
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Which are the top three affinity channel players in the UK personal lines insurance industry?
The top three affinity channel players are Tesco Bank, Post Office, and M&S Bank.
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Which are the top three price comparison website channel players in the UK personal lines insurance industry?
The top three price comparison website channel players are Admiral, Hastings Direct, and Animal Friends.
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